February 22, 2026
10 mins
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July 29, 2025
July 29, 2025
Investing in early-stage crypto projects has always represented opportunity and risk. In the early days, especially during the 2017 ICO boom, investing in early-stage crypto projects was known for fraud, rug pulls, and scams.
This was highlighted by the well-known Bitconnect fraud. During the next surge of crypto projects, the 2021 bull run, projects like Squid Game Token pumped and crashed, making safety a necessity.
According to Cryptorank, Crypto fundraising has evolved since then. In Q2 2025 alone, over $10 billion was raised, the highest figure since the last bull market.
At the same time, the smallest number of deals involved check sizes under $1 million, showing that entry points for small investors are shrinking.
Launchpads have emerged as a response to this shift. They reduce risk by offering structured and transparent token sales, often with refund mechanisms.
While they do not eliminate risk completely, they provide a much safer entry point for new investors looking to support early-stage Web3 projects with more confidence.
Crypto launchpads are the Web3 version of crowdfunding. They allow project founders to raise capital from retail investors worldwide. This process happens through smart contracts, where tokens are minted and distributed directly to investors.
In exchange for their support, investors receive early access to the project’s tokens; often before the token is listed on public exchanges. It’s a way for anyone to back early-stage Web3 ideas without relying on private VC rounds or insider access.
Crypto launchpads fall into two big groups: centralized and decentralized. Inside those categories, you’ll also find launchpads that focus on specific niches like gaming, DeFi, or NFTs.
These are run by a company or exchange that usually follows government regulations; platforms like Binance Launchpad or KuCoin Spotlight.
While they get a lot of mainstream attention and often feature big-name projects, they also tend to include private rounds and tiered access systems.
That means small investors have the short end of the stick, acquiring tokens at a higher cost, which lowers their chances of getting a strong return on investment.
These platforms operate through smart contracts without middlemen. Launchpads like CoinTerminal, Polkastarter, or DAO Maker use blockchain technology to run sales transparently. Investors can usually join with only a Web3 wallet and stablecoins.
The open-access model means a higher chance to buy tokens at early-stage prices, with fewer gatekeepers.
Some platforms specialize in specific Web3 verticals. For example:
Hosted on centralized exchanges like Binance. The exchange oversees the sale and listing.
Conducted on decentralized launchpads and settled via smart contracts on DEXs like Uniswap or PancakeSwap.
An older fundraising model conducted directly by the project team. ICOs are typically not hosted on launchpads and are seen as riskier due to the lack of third-party oversight.
Crypto launchpads follow a simple flow.
First, they select the projects and evaluate them through a process called vetting. Then, depending on the platform, they host either an IDO or an IEO. After that, they promote the project to attract investors.
At the time of the Token Generation Event, tokens are minted and made available for investors to purchase. Investors buy the tokens, and the project receives the funding it needs to move forward.
That’s the base. What really matters is how well each step is done.
While crypto launchpads have safety mechanisms and represent an evolution in how we invest in crypto, they still carry risk. Just because a project is listed on a launchpad doesn’t guarantee success or safety. That’s why it’s important to understand the risks that still exist and how to manage them wisely.
Some of the most common risks include:
All launchpads have some kind of vetting process, but how that due diligence is done depends on the platform’s reputation and standards.
One of the key elements when launching a crypto project is how the inflation rate is managed and how value will be sustained over time. At CoinTerminal, we look at secondary liquidity to understand whether the token can perform in the long term.
Even refundable sales depend on smart contracts. If a contract is poorly written or hasn’t been audited, users could lose their funds. That’s why contract quality is essential.
Projects need to be aligned with the current state of the market. At CoinTerminal, we evaluate the present narrative in the crypto space to make sure the project connects with what Web3 users are actually looking for.
Investors can fall into FOMO traps based more on marketing than actual fundamentals. This can be tricky because engagement drives Web3 forward, but it’s also important to research the team behind the project and understand what and how they’re building.
Do due diligence on the launchpad's reputation, what projects they have launched in the past, and how those projects have sustained over time.
Also, look into whether they have launched projects that align with your interests.
And last but not least, think about how you interact with the platform. You want to use a platform that offers a curated selection of projects with high ROI potential but also a great user experience.
Yes. They are a great tool for small investors to access higher returns, especially decentralized launchpads that host IDOs. They balance ROI and safety in an innovative way that reflects how Web3 is evolving.
All investments carry risk, and launchpads are no exception. But they offer a curated selection of early-stage projects with a higher return potential than most traditional finance tools, while still protecting small investors.
At CoinTerminal, we are proud of the projects we have launched. Many of them have secured listings on centralized exchanges, which speaks to their long-term potential.
Check out our active IDOs. There is no token gating, no staking, and all sales are refundable. We also run an ongoing $5,000 lottery, and you stay entered even if you request a refund.
So don’t hesitate. Join our next sale and be part of something early.
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.
