How Crypto Launchpads Work for Startup Fundraising - A Beginner’s Guide

The rise of cryptocurrency has transformed how startups raise funds. Instead of chasing traditional venture capital or bank loans, blockchain startups now have a powerful tool: crypto launchpads. These platforms provide early-stage projects with funding, visibility, and community support, while giving investors access to promising tokens before they hit major exchanges.

If you’re new to the world of launchpads, this guide will explain what they are, how they work, their benefits, risks, and real-world examples.

What is a Crypto Launchpad?

A crypto launchpad (also known as an Initial DEX Offering or IDO platform) is a fundraising platform designed to connect new blockchain projects with early investors. Startups launch their tokens here at discounted prices, while investors get a chance to participate in the project’s early growth stage.

For example, imagine a startup building a decentralized gaming ecosystem. Instead of waiting years to approach VCs, they can launch their tokens on a launchpad, raise funds quickly, and simultaneously build a community of supporters.

Launchpads play the role of matchmakers, bridging the gap between startups that need funding and investors looking for early opportunities.

How Do Crypto Launchpads Work?

Although every launchpad has its own model, the process generally follows these steps:

1. Project Selection and Vetting

Not every project can be listed on a launchpad. Platforms like Binance Launchpad, Polkastarter, and DAO Maker thoroughly screen projects. They look at the project’s team, whitepaper, tokenomics, and long-term potential. This helps reduce scams and ensures quality.

2. Token Allocation and Pricing

The startup decides how many tokens will be available and at what price. For example, if a project issues 10 million tokens, it may sell 1 million during the IDO at $0.05 each. These early prices are often far lower than what they might trade for after exchange listing.

3. Investor Qualification (Staking System)

Most launchpads use a staking mechanism. To participate, investors must hold or lock the launchpad’s native tokens (e.g., BNB for Binance Launchpad, POLS for Polkastarter).

Some platforms use a lottery system, while others guarantee allocation based on staking amount.

4. Fundraising Event

The fundraising itself may take different forms:

IDO (Initial DEX Offering): Tokens sold through decentralized exchanges.

IGO (Initial Game Offering): Tokens for gaming-related projects.

INO (Initial NFT Offering): NFT-based fundraising for creative or metaverse projects.

Investors typically purchase tokens using stablecoins like USDT, BUSD, or other cryptocurrencies.

5. Token Distribution and Listing

After the IDO ends, tokens are distributed to investors. Shortly after, they are listed on decentralized exchanges (DEXs) like Uniswap or PancakeSwap, and sometimes on centralized exchanges (CEXs). This creates liquidity and enables secondary trading.

Benefits for Startups

Quick Access to Capital – Startups can raise significant funds in a short time without going through complex VC processes.

Global Reach – Launchpads attract investors worldwide, offering a broad base of support.

Community Building – Early investors often become advocates, promoting the project organically.

Market Validation – A successful IDO demonstrates real demand for the project.

Benefits for Investors

Early Investment Opportunities – Gain access to tokens before they are listed on major exchanges.

High ROI Potential – Many tokens launched through IDOs see substantial price increases post-listing.

Reduced Risk of Scams – Reputable launchpads vet projects before allowing them on the platform.

Diverse Opportunities – From DeFi to gaming and NFTs, investors can explore a variety of sectors.

Popular Crypto Launchpads

Here are some of the most recognized launchpads in 2025:

Binance Launchpad – One of the oldest and most trusted platforms, backed by the Binance exchange.

Polkastarter – Known for multi-chain support and community-driven IDOs.

DAO Maker – Focused on retail-friendly fundraising and strong vetting standards.

TrustSwap – Provides secure token launch services with time-locks and escrow features.

GameFi Launchpad – Specializes in blockchain gaming and metaverse projects.

Crypto launchpads have become a game-changer for startup fundraising, making it easier for innovative projects to secure funding while giving investors a chance to back the next big idea.

Crypto launchpads have emerged as a revolutionary tool for startup fundraising, enabling projects to raise capital, build communities, and gain global visibility. For investors, they provide early access to promising opportunities and potential for high returns—though not without risks.

If you’re a startup planning to launch your own token or fundraising platform, partnering with a crypto launchpad development company can make all the difference. From custom token launch platforms to integrated security features, staking models, and investor dashboards, a professional development partner ensures your launchpad is built for scalability, compliance, and long-term success.

In today’s competitive blockchain ecosystem, the right launchpad and the right development partner can be the key to turning your idea into the next breakthrough project.