Binance Launchpad and Launchpool are two popular features offered by a leading crypto exchange. So, what are the differences between the two and which one is better?

Binance is a widely known cryptocurrency exchange with no less than 28 million active users worldwide. But apart from facilitating the buying and selling of cryptocurrencies, Binance also offers a number of other equally useful services to tailor the needs of crypto traders, users, and holders. Binance has also developed its own blockchain system called Binance Smart Chain, where all developers could build or move their DeFi projects, tools, or apps.

Binance Launchpad Vs Launchpool

Apart from that, Binance also has two other special features called Binance Launchpad and Binance Launchpad. Essentially, both platforms are designed to support the crypto ecosystem by offering early access to various crypto projects. This can be beneficial for both developers and users because, on one side, Binance could help to raise awareness and adoption of the projects by guiding developers on how to best launch and promote their tokens, while at the same time, they help investors boost their income.

In other words, it's safe to say that both Binance Launchpad and Launchpool help crypto projects and tokens thrive on the market, while also enabling users and investors to make greater returns. Now the only question left is, what are the differences between the two and which one should you choose?

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What is Binance Launchpad?

Binance Launchpad is the older of the two platforms, dating back to 2019. According to its official website, Binance has gained a total of 57.8 million in tokens across 23 projects and the total value of those tokens is currently at $725.2 million.

A crypto launchpad is basically a platform where investors can discover new and promising DeFi projects. Launchpads are mostly considered safe because the featured projects are usually handpicked by the platform and tightly ed before being promoted to the public. Through the introduction of Binance Launchpad, the exchange pioneered the concept of the Initial Exchange Offering (IEO), which is a crypto fundraising model where the projects are backed by exchanges.

Before the release of crypto launchpads, blockchain project developers had to initiate their own events in order to raise funds for their growth and development. This method is called the Initial Coin Offerings (ICO). Unfortunately, the ICO model carries serious risks as it is vulnerable to misinterpretation, fraud, and manipulation. While there are loads of projects that successfully became big with ICO, many failed for various reasons. Users have also reported a number of fraud cases related to ICO-based projects and stressed the lack of protection for their funds. This is why the introduction of IEO on Binance Launchpad has quickly become a fresh breakthrough that could help investors support crypto projects in a safer and more convenient way.

Here are the notable advantages that you can get from using Binance Launchpad:

 

1. Protections for Both Users and Project Developers

All projects supported on a launchpad are handpicked by the exchange and must go through a rather tight ion process before being offered to the public. Every project that's featured on Binance Launchpad must fulfill a series of requirements. Binance has certain criteria to accept or reject a project, including business and token economic models, a brief history of the project development team, relatively mature-stage project development, suitability for adoption on a larger scale, and the potential to benefit the growth of the wider community.

Also, as a top global exchange, Binance has a huge advantage in terms of credibility. Over the years, the exchange has successfully managed a good track record so there's no need to worry about the safety of the projects.

 

2. Exposure to a Global Scale Community

When a crypto project qualifies for being featured on Binance Launchpad, it means that it will gain full support from Binance starting from before the token is issued up to the promotional activities. The exchange also offers project guidance from the listing and investment teams, which basically evaluate and monitor each project.

Furthermore, being featured on Binance Launchpad is a huge advantage for crypto projects because then they'll be exposed to millions of active crypto holders and investors within the Binance community. The projects will also be listed and have world-class liquidity alongside many popular trading pairs.

 

3. Fair Distribution of Initial Tokens Offered

Binance Launchpad uses a lottery system to distribute its tokens. Once a new IEO is announced, a certain amount of BNB tokens will be taken from the potential investors' holdings over a specific period of time that varies depending on the sale. Soon after the period is over, there will be a claim ticket button for users to confirm their lottery tickets. Note that this ticket will appear for 24-hour only. After that, the lottery will start and the winners will automatically become participants of the IEO in exchange for BNB tokens. The number of tokens that an investor can keep depends on how much they commit and is subject to individual caps.

 

4. Potential Long-term Success for Users and Crypto Projects

Binance Launchpad has gained incredible support and success over the last couple of years. This shows that the platform is a reliable investment for both crypto holders and project developers. Although the exact results may vary from one project to another, the launchpad can generally give all the support needed for a project to be successful. Therefore, this gives the project a head-start compared to others that are not featured on Binance Launchpad.

 

What is Binance Launchpool?

Binance Launchpool was released in September 2020, particularly during the Decentralized Finance (DeFi) boom. A launchpool is basically a platform that allows users to stake their crypto assets in exchange for crypto rewards. This process is also known as yield farming. At the end of the process, the staked tokens are returned to the users along with the new ones that they've earned. Users can unstake their tokens any time they want.

Binance Launchpool essentially combines the practice of DeFi and the convenience as well as safety of the well-known exchange so that users could farm assets and get various rewards for staking their tokens. While Binance Launchpad allows users to buy new tokens before they go mainstream, Binance Launchpool allows users to earn rewards without having to spend any money.

The following are some benefits that you can get from using Binance Launchpool:

 

1. Easy Way to Farm Tokens

Binance Launchpool allows you to simply lock your tokens in a pool of funds for a period of time and then farm the profit at no cost. The amount of new tokens that you'll earn per day depends on the number of tokens you staked relative to the total number of tokens in the pool.

To participate in the Launchpool, you just have to commit at least 0.1 BNB or other tokens supported by the pool. Trading is open on the seventh day of farming and you can trade for around 30 days from the commitment day. Conveniently, you can redeem all pending tokens at any time.

 

2. Earn New Tokens at Zero Cost

The best thing about staking is that you can earn new tokens while still owning the tokens you commit. You should just lock the tokens for a specific period of staking time and redeem your earnings at any time you wish. Staking your tokens into the launchpool won't prevent you from getting airdrops and VIP rewards as well. So, if you have some spare tokens in your holdings, this option can be a brilliant idea to generate more income.

Please note that supported pools vary from one crypto project to another. You can check the pool availability by visiting the project's launchpool page and seeing the list of supported pools. You can also view the APY of each pool once trading opens for the token that you desire.

 

3. Growth and Exposure for Crypto Projects

Similar to Binance Launchpad, the launchpool supports promising crypto projects in their early days. Those projects are more likely to succeed in the long-term as they are exposed to the wide community of Binance users. Meanwhile, the success of launchpool also contributes to the growing worldwide community, which can be an advantage for both users and crypto projects.

 

Which One is Better?

From the explanation above, we've learned that both Binance Launchpad and Binance Launchpool support promising crypto projects and aim to create a better and safer crypto ecosystem for investors.

However, the two are fundamentally different in a number of ways. Therefore, we can't exactly compare them and decide which one is better than the other because each has its own purpose and benefits.

If you want to support new and reliable crypto projects, you should join Binance Launchpad and pick a project to invest in. Meanwhile, if you have some spare tokens and are currently looking for a passive income opportunity, Binance Launchpool is the better choice.

Regardless of which option you choose, you would need to sign up and create a Binance account before you could access any of these platforms. Once you complete the verification process, you simply have to log in to your account and start your journey with Binance Launchpad and Launchpool.