Cryptocurrency and the Web3 have revolutionized the concept of decentralization, allowing for a new era of trustless investments. With over 16,000 cryptocurrencies available, however, investors often feel overwhelmed. To alleviate this problem, crypto launchpads have risen to facilitate the curation of investment opportunities. They offer retail investors preferential or exclusive terms while also providing investors access to useful information.
The primary benefit of crypto launchpads lies in the access they provide to high quality deals. In contrast to websites like Y Combinator, accelerator models are now accessible to retail investors. This provides them with the benefit of detailed due diligence reports and vetted financials. In addition, project creators are able to select the right investment opportunities through launchpad tokenholders who can offer high quality investments and exclusive terms.
In the tripartite model of the launchpad ecosystem, all players benefit. The startup gains capital, the investor receives exclusive deals, and the community has more decision-making power. This dynamic is especially valuable in the DeFi space, where smart contracts and oracles must be vetted for investor security. Crypto launchpads provide this service, cutting out the noise and identifying viable projects.
Despite these benefits, crypto launchpads are far from perfect. Communities could be better equipped with experienced investors and quality launchpad communities, and token holders need to be further educated on how the system works. Self-regulation may also be necessary until regulations are put in place.
These issues notwithstanding, crypto launchpads have the potential to revolutionize decentralized finance. By giving retail investors access to high-quality deals, providing project creators with necessary resources, and offering the community more responsibility, launchpads differentiate Web3 from Web2. With the right follow-through, crypto launchpads may be the beginning of a decentralized venture capital model: one that not only facilitates trustless investments, but brings these opportunities to the masses.