How Launchpads Create Win-Win Scenarios for Founders and Investors

Written by
Catherine Andrea Gerdez
Published on

November 22, 2025

Updated on

November 22, 2025

Launchpads are here to stay. They first appeared as an evolution of ICOs back in 2017, offering a safer and more structured way to raise funds. For investors, they create opportunities for higher returns with more protection. For founders, they open access to a broader audience without the chaos of going at it alone.

But how exactly do launchpads make this a win-win? What mechanisms do they implement that reduce risks and relieve the stress on both sides? Let’s break it down.

What Is a Crypto Launchpad?

Think of a launchpad as the Web3 version of a startup incubator. Its role is to connect project founders who need funding with an audience ready to invest. But in Web3, it’s not just about raising money; it’s about building a space where both sides meet under fair rules, with safety mechanisms in place, and with the goal of sustaining value over time.

How Do Launchpads Work for New Projects?

Projects usually apply through a form, but the real work starts in what’s called the vetting process. This is where the launchpad checks the project’s team, tokenomics, and roadmap. The point is to make sure only serious projects move forward.

There are two main kinds of launchpads:

  • IEO Launchpads, run by centralized exchanges.
  • IDO Launchpads, decentralized and powered by smart contracts.

Both give projects a structured way to launch, but the approach differs. IEOs lean on the reputation of the exchange, while IDOs rely on automation and transparency through code.

Why Do Launchpads Create a Win-Win Situation for Both Sides?

Launchpads balance the needs of founders and investors, creating an environment where projects can raise funds securely while users gain safer, earlier access to opportunities.

For Founders

A launchpad provides the best funding environment a project can get. By connecting to a curated audience, projects don’t just raise money; they reach the correct type of users who believe in their niche, whether that’s AI, gaming, infrastructure, or DeFi.

Launchpads also grow their own user bases through marketing, social media, and reward systems. That exposure passes directly to the projects they host, multiplying visibility and reach. With the right launchpad, a founder isn’t just raising funds; they’re building a community that can sustain token value post-launch.

For Investors

For investors, the value of a launchpad is trust. Instead of investing “in the wild” through a random website, they’re joining a curated list of projects that have already been vetted. This gives them peace of mind that someone has done the due diligence.

On top of that, launchpads design smooth user experiences, set clear rules, and explain how sales work. All of this reduces stress for retail investors, making it easier for them to participate without worrying whether the project is legitimate or if the process is safe.

What Risks Should Founders and Investors Be Aware Of?

There are still risks on both sides. For founders, the biggest one is choosing the wrong launchpad. If the platform has a bad reputation or has been tied to scandals, that negativity will reflect on their project too. It’s not just about failing to raise enough funds; it can mean carrying long-term reputational damage.

For investors, the risks are more direct: fraud, scams, or losing money due to poor security. Privacy is also a concern in Web3. Handing over sensitive information to a platform that doesn’t have security audits can put investors at risk. That’s why both founders and investors need to carefully evaluate the launchpad before committing to it. Read more on how to identify a legitimate launchpad here.

What Benefits Do Founders Get from Using a Launchpad?

The biggest one is exposure. Launchpads give projects access to a global audience and can help raise up to 10x more funds than traditional crowdfunding methods.

Founders also gain control over how they market and communicate with investors. And at CoinTerminal, we go further: we don’t just fund and incubate; we accelerate. We’ve already taken more projects to centralized exchange listings than any other launchpad.

If you’re a founder ready to launch, reach out to our team through Telegram to start the process.

What Role Does Transparency Play in Launchpad Success?

Transparency is what gives both sides confidence to participate. Launchpads publish details like tokenomics, vesting schedules, and distribution rules so that nothing is hidden.

For founders, transparency shows their project is being taken seriously. For investors, it proves that their money and tokens are being handled fairly. Without it, neither side can truly trust the process.

How Do Launchpads Build Trust Between Founders and Investors?

Trust comes from creating open spaces where both sides can interact. At CoinTerminal, we host X Spaces with our project founders, giving investors a chance to ask questions directly and build confidence.

We also run in-person community events worldwide, from China to Turkey, so that investors and founders can meet beyond the screen. This open communication makes investing more personal and strengthens the bond between both sides.

Final Thoughts

Launchpads are designed to be safe meeting points for both founders and investors. They reduce risks, create trust, and help projects get the visibility they need, while giving investors curated opportunities in return.

At CoinTerminal, our approach is simple: no token-gating, no staking, and refundable sales. On top of that, every contribution of 250 USDT or more enters you into our monthly lottery, even if you later request a refund.

Check our active sales now and see how launchpads are building the future of Web3 fundraising.

Disclaimer

This article is for educational purposes only. It is a general guide for founders and users navigating the Web3 space. It does not constitute financial advice. Always do your own research before making any investment decisions.If you want to learn more about raising funds or which IDOs to look into, our team is here to help. Feel free to reach out to us on Telegram at any time.

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