1. Market background
With the development of the crypto market, Launchpads have become a vital tool for new project financing and community building, acting as a catalyst for bull markets. However, existing Launchpad ecosystems still face many pain points. Users often find themselves in a passive position before a project launches, facing high valuations and limited investment opportunities, while project teams struggle to find early supporters, affecting fundraising and community building.
In recent years, due to changing regulatory policies, the fundraising environment for new projects has become more challenging, though market liquidity remains strong. Statistics show that the top 20% of projects in the market capture over 80% of the funding resources, indicating that high-quality projects still have strong capital attraction. Looking back, the total fundraising during the 2020 bull market reached $2 billion, and in 2017, it reached $15 billion. Despite a downturn in the market in 2023, $300 million still flowed in, and by 2024, the fundraising scale reached $13.7 billion. With the overall market outlook positive in 2025, a new market surge is expected.
The current market has experienced the evolution of different phases, including IEOs, ICOs, and IDOs, but traditional models still have limitations. In many blockchain projects, tokens typically go through several rounds of early sales before officially entering the market. These rounds include private sales, seed rounds, and early bird rounds, where some VC firms are often able to participate at lower prices. The LaunchPad is the final stop for tokens entering the market, and compared to early rounds, LaunchPad prices are generally higher. This structure means that retail investors are often at the bottom of the pyramid, while token chips are concentrated in the hands of large investors.
In the context of an overall lack of market growth, the returns for investors participating in LaunchPads are increasingly deteriorating. At the same time, most of the profits go to whale investors, while some "dishonest" participants in events like IDOs use various means to "pre-empt" opportunities, leading retail investors to face the lowest returns and the highest risks.
We have previously tracked 87 LaunchPad projects (including IEOs, IDOs, etc.) that raised over $2 billion in total, but 62% of these projects broke even or lost value immediately after launching, with some projects seeing losses exceeding 99%. Despite this, early-stage institutional investors often profit from these projects, while many retail investors participating in LaunchPads do not fare as well. Today, dozens of LaunchPad platforms, including DAO Maker, Polkastarter, Seedify, Impossible Finance, etc., still launch numerous new projects every day, with over 50% of these projects failing to secure enough funding and quickly wrapping up after the LaunchPad ends.
As a next-generation LaunchPad platform, LaunchPlaza is committed to providing the best return opportunities for all investors, creating a more efficient and fair investment environment. Through this platform, we aim to help crypto projects establish closer connections with their communities and investors, and through reasonable fundraising mechanisms, distribute token allocations, reduce selling risks, and achieve sustainable development.
Moreover, LaunchPlaza continues to explore diversified development paths. Not only will we continue to support emerging sectors such as AI and Memes, introducing a series of innovative approaches to expand investor participation opportunities, but we will also further build a creator economy ecosystem, offering more diverse ways for users to engage in our LaunchPad activities, bringing more opportunities and possibilities to the crypto industry, and fostering the mutual growth of projects and communities.
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