How launchpads work
Token launchpads host Initial DEX Offerings (IDOs) or token sales for new crypto projects. Users typically need to hold or stake the launchpad's native token to qualify for allocations. The more you stake, the higher your allocation tier — and the more tokens you can purchase at the launch price.
Evaluating project quality
Look at the launchpad's vetting process and track record. How many projects have they launched? What's the average ROI? How many projects are still active 6-12 months post-launch? The best launchpads reject most applicants and conduct thorough due diligence.
Understanding allocation tiers
Most launchpads use a tiered system based on how many native tokens you stake. Higher tiers get guaranteed allocations while lower tiers enter a lottery. Calculate whether the staking requirement justifies the potential allocation — sometimes the opportunity cost of staking isn't worth it.
Risk management
Even on reputable launchpads, not every project succeeds. Many tokens drop below their launch price. Never invest more than you can afford to lose, diversify across multiple launches, and take profits when available rather than holding indefinitely.