In January 2020, Binance, the largest cryptocurrency exchange in the world by traded volume, announced that it would launch new token fundraising events every month through its Binance Launchpad platform.
The results have already started to come through. The first token sale on the new platform was that of the P2P file sharing platform BitTorrent.
The project managed to raise $7.12 million in less than 15 minutes and sparked interest throughout the community. This was a certainly a hint that ICOs may be making a comeback.
Click on each project for more info.
| Name | Status | Date |
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finished | 13/08/20 |
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finished | 21/04/20 |
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finished | 03/02/20 |
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finished | 24/04/19 |
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finished | 19/03/19 |
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finished | 23/10/19 |
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finished | 16/09/19 |
The second fundraising event a month later, backing a project called Fetch.AI. A whopping $6 million was raised in 10 seconds, far eclipsing the BitTorrent event.
Following their listings the respective tokens, FET and BTT, saw a large surge in their prices. This has triggered a great deal of interest among the crypto community members.
It’s also worth noting that Binance has started a trend when it comes to large exchanges opening their token sales platforms.
This type of fundraising event has now been dubbed an Initial Exchange Offering or IEO. Five more major exchanges have announced that they will follow Binance and launch their own IEO platforms, among them are Bittrex, KuCoin and Okex.
We’ve created a comprehensive guide on how to use the Binance Launchpad platform to help you get started with slicing your own piece of this new and exciting crypto-pie.
Let’s start with the basics. First, you have to log in to your Binance account. If you don’t yet have one, you will need to create one before you can access the Binance Launchpad. You can find out how to open Binance account here.
Once you are logged in, click on the menu icon in the top left part of your screen and select ‘Launchpad’ from the drop-down options.
You will find the projects featured on the launchpad platform in the center of your screen.
The status of each project is carefully laid out for easy understanding. Those that are about to enter their token sales phase are usually found on the left and will display a summary of the most important information for each project. This includes the total supply of tokens for a session and its start time.
When you click on a project, you will be redirected to a dedicated page on the platform that contains all the necessary information about that particular IEO.
At the top of each page there is general information about the project and fundraising event. This includes some of the following metrics:
You may have noticed that there is also a “Claim Ticket” button. At the time of writing this was not active because the token sale had not yet started.
Before you can participate in an event on Binance Launchpad, you must provide some personal information, which is known by the term Know Your Customer, or KYC. This varies based on the project, however there is a generic verification process that most projects use. Below you can see an example of the kind of information required.
There is a 4-step verification process:
Step 1: The first thing to do is to enter the required personal information.
Step 2: Once that is done, you have to submit a picture of your ID. The process is quick. Although you can take pictures with your webcam, we recommend that you use your phone or a digital camera to ensure decent picture quality as this will also speed up the process quite a bit.
Step 3: Complete the facial information step of the verification process. Binance is very thorough. You have to write down the current date as well as the word “Binance” next to your face while the software takes a picture of you with your laptop camera.
Step 4: Technically, you’re all done. However, once you have completed all of the above, you have to allow some time for your approval to be processed.
You will also notice that certain countries are currently not allowed to participate in these fundraising events.
Before you invest in any project, you should do in-depth research about potential pros and cons. Binance Launchpad compiles extensive information about every single project it hosts.
We recommend reading the full report on any project that you are considering investing in. Following this advice will drastically increase your chances of making your first investment on the Binance Launchpad a successful one.
Once you’ve gone through the process of providing the required information and doing your research, the next step is to check when the sale session begins and prepare yourself.
Please note that each session allows users to buy tokens using another pre-specified token. So far this year, all token sales were carried out using this model except for the BitTorrent launch. With BitTorrent, users were able to purchase BTT tokens (BitTorrent tokens) using both BNB (Binance coin) and TRX (Tron coin). This meant that two separate sessions were carried out at the same time.
After running several IEOs, Binance had concluded that in order to meet the enormous demand for participating in Binance Launchpad’s IEOs, they had to find a better solution then “first come first serve.”
That’s why they introduced lottery mechanism, based on holding Binance Coin (BNB) in your Binance account.
Once a new IEO is announced, a snapshot for BNB holding is taken for a period that varies between 7-30 days (changing for every sale).
Then, the average balance of BNB is calculated. For every 50 BNBs, you will be granted one lottery ticket. The maximum tickets allowed per account is 10, for holding 500 BNBs on average.
Immediately following the ‘BNB counting days,’ you will need to confirm your number of tickets using the “Claim Tickets” button that will appear for 24 hours following the BNB counting period.
Next, the lottery will take place, and the winning tickets will automatically participate in the IEO in exchange for BNBs (this process is done automatically once you applied for a lottery draw and won any ticket).
Participating in a fundraising event on Binance Launchpad is relatively simple. The main things to remember are that you will need to provide some personal information, including doing facial recognition, and the importance of doing proper research before participating in a sale.
Overall, the Binance team has gone above and beyond to ensure that participating in launches is both simple and accessible.
Keep in mind that these fundraising events currently trigger massive interest. Thousands or even hundreds of thousands of people take part, meaning successful purchases are not always guaranteed.
Judging by ROI, almost all IEOs so far granted a decent amount of profit to the Launchpad’s participants.
