Get to know different kinds of launchpads

New approaches to fundraising are emerging as the crypto industry grows. Crowdfunding models are adapting to the technological advances and to the desire for customers to get in on the ground floor of exciting projects, in a way that works in the existing crypto landscape. 

Not every launchpad is formed the same way. We’ve listed the different kinds of mechanisms in which you can be involved with a launchpad and a project can get itself funded.

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Initial DEX Offering (IDO)

An initial DEX offering (IDO) is a decentralized, permissionless crowdfunding method. A DEX leverages decentralized exchanges (DEXs) to raise funds for any kind of crypto project. IDOs eliminate the use of intermediaries and offer a greater level of control and transparency for anyone investing. 

At the heart of IDOs are DEXs. Decentralized exchanges are peer-to-peer marketplaces where users can trade crypto in a non-custodial way, without the deed for intermediaries to facilitate any custody of funds or transfers. 

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Initial Exchange Offering (IEO) 

IEO platforms are similar to IDOs, but they work on a centralized exchange (CEO). These act as intermediaries between the project and investors. This does add an extra layer of diligence and trust, but it removes some of the core principles of crypto such as anonymity and lack of interference from intermediaries.  

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Security Token Offering (STO)

STOs are platforms where the tokens used are backed by real-world assets. These might be assets such as stocks, bonds, or real estate. Regulatory compliance is a key benefit of STOs, making them a safer and more secure option for investors seeking security in a launchpad. STOs are a bridge between more traditional finance with the innovative landscape of blockchain technology. 
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Initial NFT Offering (INO)

An initial NFT offering is a crowdfunding model that allows organizations to raise funds by promising NFTs to early supporters and investors. This kind of offering through a launchpad is becoming more popular as the use of NFTs grows. It is particularly attractive to digital artists, athletes, and celebrities who can easily utilize digital art to let fans feel closer and more emotionally invested. 

INOs have a low barrier to entry, with smaller offerings for smaller projects. NFTs also allow for greater sharing of launchpads, improving their reach. NFTs as a digital asset have a strong sense of community, which translates to launchpads done through INOs. 

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Initial Coin Offering

An initial coin offering (ICO) is one of the most common launchpad models. A company seeking to raise money can launch an ICO to raise funds. They are similar to IPOs, but coins are issued that have a utility for the product itself. Participants acquire tokens during the ICO and receive a new token, which represents a stake in the company or the project being fundraised for. 

ICOs have been around since 2013, the early days of Bitcoin, when Mastercoin (as Omni was known at the time) conducted the first-ever ICO, and raised over 5,000 Bitcoin. In 2014, when Ethereum came into the ecosystem, the concept of ICO became increasingly popular.  

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Hybrid launchpads

Hybrid launchpads are self-explanatory: these kinds of crowdfunding platforms utilize a mix of the different kinds of token offerings listed above. Hybrid launchpads are flexible and offer a more pick-and-mix assembly of a crowdfunding project. This widens the audience for participation as there are varied ways to engage that suit everyone’s risk levels and needs. 

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