The Comeback of IDOs and Launchpads in Web3: A 2024 Perspective

Many crypto degens and retail crypto investors are dreaming of finding a token that can grow exponentially. But at the same time, they often get these “insights” and “alpha” from popular influencers and crypto KOLs when it’s too late to generate significant gains.

In reality, it works like this: VCs get the best deals and KOLs also invest in a project before TGE and start heavily promoting these “gems” when they are traded on exchanges, pumping the price and wrecking the retail community for fast exits.

I trust you also feel tired of discovering new narratives too late after they already tripled in the market cap, and so do I. While bloggers endlessly chew around the meme coin market, I did some market research to find a mindful insight on where can we capitalize the most on the upcoming bull market and discover new opportunities & tokens early on the road.

Remember in 2023 everyone thought IDOs and launchpads were dead?

I believed so as well. But after analyzing the current market of IDOs and launchpads, I found out that we are going to get a heated rally very soon. While they haven't yet dominated the scene, the stage is set for a major breakout. From staggering returns on investments and a thaw in regulatory policy to a flood of retail investors re-entering the market, the landscape is ripe with opportunity.

Dive in as we explore the factors making launchpads the hot ticket in town, how they are reshaping the Web3 ecosystem, and how to get an advantage from that information.

Factor 1: The Rise of Launchpads in 2024

The first half of 2024 has seen a significant uptick in the performance of IDOs and launchpads.

According to TradeDog's report, the average All-Time High (ATH) return for projects launched via IEOs was a staggering 702%, indicating that investors could achieve impressive gains if they exited at peak moments. This high profitability attracts investors and new projects to explore launchpad opportunities.

Platforms like Binance Launchpad, Polkastarter, and BSCPad have solidified their positions as leading launchpads by supporting a plethora of successful projects.

For instance, Polkastarter has facilitated over 112 IDOs, raising over $49 million with an average ATH ROI of 40.7x. Similarly, BSCPad has supported 70+ projects, raising $49 million with a notable average ATH ROI of 34.7x.

From the chart below you can see the analysis of IDO launchpads’ returns in the first half of 2024, between January and May.

On average, the top 10 launchpad return is 1.5 times, which is pretty good for the pre-halving period, agree?

Factor 2: Retail Investors Returning to the Market

Recent data shows that retail investors are gradually returning to the crypto market. Reports from CMC Prime and Coindesk indicate that smaller investors are beginning to re-engage with the market, driven by significant gains in major cryptocurrencies like Bitcoin. Coinbase and Robinhood, popular platforms for retail trading, have reported increases in revenue and user engagement, signaling a positive trend.

According to CoinGecko, the total crypto market cap increased by 64.5% in Q1 2024, reaching $2.9 trillion. This growth has been largely attributed to the resurgence of retail investors who are drawn by the potential high returns and new opportunities in the crypto space.

In the recent report by Etoro, it’s also highlighted that a significant part of retail investors are going to increase their crypto portfolio holdings this year. Here’s a short breakdown of the most engaged countries:

Metrics Highlighting the Popularity of Launchpads Among Retail Investors:

1. High ROI Potential: Launchpads saw a surprising uptrend in ROI’s since the bear market of 2023. For example, Polkastarter, who increased its ROI by 170%

   
   

2. Fundraising Success: Platforms like Gate.io Startup and Bybit have shown dominance by launching numerous projects and raising significant funds. Gate.io, for instance, launched 128 projects in the first half of 2024 alone.

   
   

3. Community Engagement: Launchpads such as GameFi and TrustSwap not only facilitate token launches but also build strong, engaged communities around their projects. GameFi, focused on blockchain gaming, managed to build a community of over 200,000 crypto gamers.

Growth of Launchpad Activities and Communities in 2024

The number of new launchpads has increased significantly from the Q4 2023 until now. And these are not only standalone launchpads with “classic” business models like Ape Terminal or fair launch platforms like Fjord: new DEXes like Jupiter, CEXes, defi, and gaming platforms (like Eesee) and other web3 projects, that originally focused on different business models & products, started launching their own launchpads this yes, smelling the upcoming bull run potential.

Launchpads from the previous season, like Polkastarter, BSCPad, Seedify, and others who survived the crypto winter, are continuously expanding their user base and project portfolios. This growth is fueled by the increasing demand for decentralized and fair token distribution mechanisms, which are highly valued in the crypto community.

Why Crypto Launchpads Will Gain Traction This Year?

1. Regulatory Easing: Recent moves by regulatory bodies like the SEC to cease pursuing American startups conducting ICOs have paved the way for a safer environment for token offerings.

   
   

2. Market Demand: There is a growing appetite among investors for early-stage projects, especially those offering innovative solutions in sectors like DeFi, GameFi, AI, RWA, DePin, and NFTs. Launchpads cater to this demand, being known for providing vetted, high-quality projects compared to what retail investors can find & access on their own. For example, ​​the blockchain gaming sector has been a hotbed for investment, securing over $1 billion in funding in the first half of 2024​.

   
   

3. Inclusive Participation: Many launchpads are implementing systems to ensure fair and inclusive participation, solving the pain of the previous market cycles. For example, PAID Network’s Ignition platform uses an OpenPool system that democratizes access, allowing anyone to participate regardless of token holdings.

   
   

4. Comprehensive Support: Many launchpads nowadays offer end-to-end services (aka “incubation” for web3 projects), from initial VC funding to post-launch support, including marketing, market-making, and community growth. This comprehensive approach aims to ensure the long-term success of the projects they host.

The Evolution and Future of Crypto Launchpads

Over the past five years, launchpads have evolved from simple fundraising platforms to comprehensive ecosystems supporting various blockchain projects. The early days saw platforms like Binance Launchpad pioneering the model, but now, the market is diversified with specialized platforms like GameFi for gaming projects and Seedify for game-based IDOs.

Looking forward, the trend points towards more integrated and community-focused launchpads. Platforms will likely continue to enhance their offerings with features like AI-driven analytics, as seen with DexCheck AI, and deeper DeFi integrations to provide additional value to investors and projects alike.

Where Are the Opportunities in Crypto Launchpads?

Launchpads offer great opportunities for the retail community to invest in crypto tokens early & get high ROI, and every bull market proves it. But usually, they are very harsh on onboarding, especially once established. Very often, you have to lock in thousands of dollars to get the lowest allocation or a raffle with a minimum chance of being whitelisted for the next IDOs.

Thus, the biggest gains are generated by those who find & join good launchpads early, way before the crowd & traction made it too expensive to get in.

However, new opportunities occur regularly in this sector. And every crypto spring, we see new launchpads entering the market, trying to hit industry gaps & override the competitors. Let’s have a look at a couple of such promising launchpads that sound promising while aiming to gain a good market share this year and still yearly to join and maximize the returns for retail investors.

AlphaMind

AlphaMind positions itself as a 0 to 1 web3 project discovery and token launch ecosystem. It is a next-generation EVM-multichain launchpad dedicated to propelling high-quality Web3 startups and emphasizing authentic community engagement.

It uses a unique reputation system called “KARMA”, that tracks dozens of on-chan & off-chain activities of every user & rewards active participation and contributions. This KARMA score for the moment, in my opinion, looks like the fairest and most engaging system you can find on the market.

It combines quest mechanics (that raised in popularity in 2023 with platforms like Galxe, Intract, Layer3, and others) with multiple ecosystem rewards to facilitate community education & engagement around the projects on their launchpad.

The future $MIND token is central to the ecosystem, used for accessing community quests, token allocations, airdrops, staking, and advanced tools within the AlphaMind ecosystem. To participate in launches, users must hold and stake $MIND tokens. OR (and here is the benefit of being early) use the Karma reputation system which might be very generous to early adopters, to upgrade your score, contribute to the project, and get a guaranteed allocation for upcoming launches.

The juice here lies under the hood. AlphaMind is a sister company of InnMind, the leading acceleration platform for web3 startups & crypto VC investors. They have over 7 years of experience in this market connecting startups with investors, securing fundraising, and accelerating web3 projects.

For example, among thousands of startups that were accelerated and participated in InnMind pitching sessions, there were Metis Protocol, GT Protocol, Eesee, OrangeDX, Magic Square, etc. So, you can expect from the team a really outstanding selection of startups for IDO as well as their post-launch performance.

Common Wealth

Common Wealth, launched in early 2024, is a versatile launchpad that emphasizes accessibility and liquidity for Web3 investments.

The platform allows users to invest with credit, debit, or crypto and supports fractionalized investments. With a community-driven approach, it offers a frictionless investment experience via a mobile-first design. Users participate by staking the platform’s native tokens, and there are no lock-up periods, ensuring liquidity.

Common Wealth stands out with its democratic, community-owned structure, aiming to onboard the next billion Web3 investors through a supportive, inclusive ecosystem. One of the most attractive features of Common Wealth is its accessibility. Unlike many traditional venture capital models, Common Wealth allows users to participate with minimal financial barriers.

They also have an impressive team of crypto dinosaurs, including one of the founding partners Kyle Chasse, leading a well-known crypto VC firm Master Ventures, and serving as CEO of Paid Network. Kyle is a crypto KOL himself with over 211 thousand followers on Twitter, and a regular speaker & guest in the top crypto events & podcasts. His contribution helped Common Wealth reach significant traction in early community building & accessing good deal flow.

The platform offers fractionalized investments, meaning investors can start with small amounts and still gain exposure to high-potential projects. They don’t have strict minimum investment requirements, making it accessible to a wide range of retail investors, both small guys and big crypto whales. It is still in the early stages for those who are seeking a good token launch platform to ride the upcoming bull cycle.

Conclusion

The resurgence of IDOs and launchpads in 2024 marks a significant shift in the Web3 space. With impressive ROI metrics, easing regulatory pressures, and a growing demand for early-stage projects, I do believe launchpads are set to become the cornerstone of crypto fundraising once again.

For the retail community & crypto enthusiasts, service providers, and investors, this is an opportune moment to engage with such platforms and capitalize on their potential.

By staying informed and strategically participating in the right projects, you can navigate the crypto landscape and harness the full potential of the upcoming launchpad boom.