What is launchpool in cryptocurrency?
Launchpool provides an opportunity to earn free or discounted tokens of new projects by participating in their initial distribution. These pools are generally time-limited, requiring users to stake their cryptocurrencies, such as stablecoins, platform-native tokens, or other supported assets, into a dedicated pool. In return, users receive new tokens in proportion to the amount and duration of their staking.
Advantages of Launchpool
- Free or Cheap Tokens: Users can obtain new tokens without actually purchasing them, which is risk-free.
- Decentralized Participation: Open to anyone holding supported tokens.
- Liquidity Retention: Users retain ownership of the tokens they have staked and can withdraw them once the pool closes.
Disadvantages of Launchpool
- Market Volatility: The price of the staked tokens may fluctuate during the staking period.
- Low Allocation: High demand participation means that individual allocations may decrease significantly, especially in popular pools.
Top Cryptocurrency Exchanges Supporting Launchpool
- Binance (Binance was founded in 2017 by Changpeng Zhao (known as CZ) and has since become the most popular and technologically advanced cryptocurrency exchange in the world.).
- Bybit (Bybit is known among the crypto community as an exchange that often holds promotions and gives out rewards.).
- MEXC (MEXC is an exchange with the best conditions. Low trading commissions, frequent promotions, no KYC when withdrawing up to 10 BTC per day.).
- HTX (Huobi) (HTX is a trusted crypto exchange that has been operating since 2013 and has over 47 million users worldwide.).
- BingX (Founded in 2018, BingX has emerged as a popular cryptocurrency exchange, particularly known for its copy trading features and versatile trading options.).
- LBank (LBank has gained popularity worldwide, particularly in Asia and Europe.).
How to Participate in a Launchpool
- Pick a Platform: Choose an exchange that offers Launchpool and set up an account.
- Verify Identity: Complete KYC verification, if required.
- Deposit Tokens: Transfer the respective tokens (such as BNB, USDT) to your exchange.
- Stake Tokens: Go to the Launchpool tab and stake your tokens in the preferred pool.
- Withdraw Tokens: Once the pool ends, withdraw your staked tokens along with any newly earned tokens.
Users gain early access to promising tokens at a low price, while the project gains greater visibility and popularity. Whether you're an experienced investor or new to crypto, launchpools offer a low-risk way to earn with cryptocurrency.
