Launchpad & crowdfunding
The digital assets world is the perfect place for scams. The faster and further industry develops and more monetary flows become, the more people want to protect their assets. Therefore, cryptocommunity started developing new systems for reducing possible risks, such as, launchpad platforms.
From the beginning, the most popular and ambitious crowdfunding for new crypto projects was ICO but that method is not trusted anymore. It happened because of the big number of projects made for “money laundering”, they were profitable for their developers only. That’s when launchpads with innovative IDO appeared. In fact, these platforms turned out to be safer for investors and more trustworthy to the new projects.
Launchpad, IDO, ICO
Launchpad platforms are the platforms based on the crypto exchange for crowdfunding campaigns to develop startups. The exchange thoroughly examines a new project, makes specific demands, which the project must abide by in order to be listed. Compliance with the conditions for the project must affect its validity and workability.
IDO (initial DEX offering ) — is a crowdfunding method which is realized on launchpads where new projects are published and investors are attracted. IDO holds after the project is allowed to launchpad. So, retail investors have the opportunity to purchase coins of the project at a low cost, thereby investing in it.
ICO (initial coin offering) — is another crowdfunding model which is not trustworthy by investors and corporations; it takes place on websites and platforms of the developers. Producing company just describes the mechanics of working, offering investors to buy their coins right on the website or with side services.
Such projects are a scam and only make profit for their creators. An example is startup Centratech. It was actively promoted by Floyd Mayweather, the star of boxing and former boxer. CEOs of that project claimed to be working on a special credit card with instant cryptocurrency exchange. Centra, the producing company, promised their users that cards operated by Visa and Mastercard and even announced negotiations with them. At the end, the SEC started an investigation of Centratech. There were no negotiations nor contracts with Visa or Mastercard as it turned out after inspections. The company got a total $32 million which were raised through unregistered papers offered to investors.
Comparing IDO and ICO schemes leads us to the obvious conclusion that IDO is a more reliable tool for investments. The developers of a project are to provide information about it, mechanics of the work, documents to confirm its existence, achievements and etc in order to be included in the exchange’s launchpad listing. After publishing, members of the exchange can become acquainted with the project’s white paper, check if it’s popular, and communicate directly with the creators. So far as launchpads work on a smart contract base, investors are protected additionally against scams and financial risks. People get their money back in case the project wasn’t launched.
This is the best opportunity to become a part of future profitable and valuable business, whilst the developers arrange a trusting community which is waiting for release. That group of people has access to social media, websites and other channels of communication directly with the company. Users are waiting and watching the process, sometimes they can even take part. And finally, developers couldn’t close project and fade away because there is a real-life connection with the audience and more motivation to end their job.
In the digital area you can’t be absolutely safe and completely sure of encryption, but still people are creating new ways and systems to make being in the Internet secure for everyone. Despite obvious benefits of IDO and launchpads there is no entirely possibility of defending launchpads of scams. However, the chance of getting trapped and risks is less than when investing in an ICO.
Launchpad platform del.network for attracting investors
The developers of our partners are working on the investing platform del.network related to DEX dels.io. On that platform investors will be able to find new interesting projects to keep an eye and support with DEL. It should help startups evolve and open new horizons.
As other IDO work, all operations between parts will be based on smart contracts on DEX. So, investors can be sure to save their assets if the project doesn’t work out and developers will be motivated to launch successfully. This working system brings the trusted relationship between parts and protects everyone against scams.
Send your project to an early start now on del.network.