The Difference Between a Crypto Launchpad and an ICO

Written by
Catherine Andrea Gerdez
Published on

July 9, 2025

Updated on

July 9, 2025

If you’ve been exploring the DeFi space, you’ve probably come across terms like Crypto Launchpad and ICO. At first glance, they might sound similar, but they serve very different roles in how Web3 projects raise funds.

In today’s article, we’ll explore these two concepts:

  • A Crypto Launchpad
  • An ICO

Both are ways in which crypto projects raise capital, but they differ in how they’re implemented, in the level of risk, transparency, and even in how much information or education you, as an investor, need in order to properly tell them apart.

We’ll define each concept, explain how they work, what to expect from them, and their key differences, so you can make the best decision for your financial goals and interests.

What Is a Crypto Launchpad?

A Crypto Launchpad is a platform where you can invest in early-stage blockchain projects before their tokens are listed on major exchanges. 

Key aspects of a Crypto Launchpad:

  • Early access to token sales before public exchange listings
  • Discounted prices for early investors
  • Transparent project vetting to reduce risk
  • Capital and exposure for founders to grow their ecosystem
  • Community-driven momentum to kickstart adoption

What Is an ICO Launchpad?

An ICO, or Initial Coin Offering, was the original way for crypto projects to raise funds. It works like this: the project creates a token and offers it to early supporters in exchange for crypto like ETH or BTC. In return, investors receive early access to a token that may appreciate in value if the project is successful.

It’s similar to an Initial Public Offering in traditional finance, except instead of buying shares, you’re buying tokens. The goal remains the same: to raise funds initially to develop the product and drive growth.

Key aspects of ICOs:

  • Direct fundraising from the public, usually via a project’s own website
  • Token pre-sale before exchange listings
  • No third-party involvement, meaning no vetting or platform oversight
  • Investors took on full risk, analyzing whitepapers, teams, and tokenomics themselves
  • Popular in 2017, but often associated with scams, rug pulls, and vaporware

The Origins of ICO Launchpads

Now, what people refer to as an “ICO launchpad” is a loose term. It simply refers to a platform or page where a project conducts its ICO directly. Back in 2017, this was the most common fundraising method. Founders would build their own site, publish their whitepaper, and start collecting funds, usually without any third-party oversight.

This lack of structure is exactly what led to the rise of crypto launchpads. The need for fundraising remains, but investors also seek security, transparency, and assurance that the project has been reviewed by someone other than the founders.

How CoinTerminal Improves the Process

At CoinTerminal, we’ve built a platform that not only makes it easier for you to invest but also offers Web3-level security while delivering additional value.

We offer different mechanisms to protect users, including a no-staking access model, a refund option if the token doesn’t perform after listing, and even lotteries and community activities to keep participation engaging and fair.

How Does a Crypto Launchpad Work?

A Crypto Launchpad is a platform where Web3 projects raise funds and build visibility. Most launchpads are token-gated, meaning you have to buy and hold the launchpad’s native token just to access upcoming sales. This adds risk because you’re exposed to the volatility of the launchpad token before investing in the project you’re interested in.

In many cases, token purchases on launchpads also come with vesting schedules, so you can't sell your tokens immediately. This can limit your flexibility and add friction for new users.

What Is the Difference Between a Crypto Launchpad and an ICO?

We’ve already reviewed what a Crypto Launchpad is and what an ICO is. Now, let’s compare a Crypto Launchpad that hosts IDOs, like CoinTerminal, versus a platform that hosts ICOs.

Both are tools for raising funds in the Web3 space, but the difference is in how the process is handled. At CoinTerminal, we are a Crypto Launchpad that hosts IDOs. We thoroughly review each project and offer safety mechanisms for investors. On the other hand, with an ICO, the project handles everything independently, and it's up to you, as the investor, to decide whether the project is legitimate or not.

Here’s a side-by-side comparison:

Feature

Crypto Launchpad

ICO

Regulation

Semi-regulated / Community-Driven

Often unregulated

Investor Protection

Project vetting and structured processes

High risk due to lack of vetting

Access

Curated community / KYC required

Open to the public with fewer checks

Fundraising Model

Typically, IDOs or IEOs

ICOs (direct token sale)

Platform Support

Technical, marketing, community, compliance

Usually none

Post-Launch Support

Available on quality platforms

Rare or nonexistent

Transparency

On-chain processes and data

Often opaque

At CoinTerminal, we take safety seriously. We actively promote high-quality projects and help them raise funds with a system that prioritizes user needs. We deeply understand how to remove barriers for you as an investor, so this process is as easy and as comfortable as possible.

That’s why we’re an open-access, no-gating, no-staking Crypto Launchpad, and offer full refund options. You even get entered into our monthly $5,000 crypto lottery just by participating in any of our refundable sales.

What To Look For In a Crypto Launchpad?

A Crypto Launchpad helps Web3 projects raise funds, but not all platforms offer the same level of reliability. If you're going to invest, you need to understand how the platform works and what protections are in place.

Here’s what to check before you participate:

Investment Process

 Can you invest directly with stablecoins, or do you need to purchase the platform’s token first? Token-gated models add risk by exposing you to volatility before you even access a deal. CoinTerminal is not token-gated. You invest directly in the project.

Investor Protection

Are Safety Features Available? Look for refund policies, transparent selection processes, and no staking requirements.

Post-sale support

 Does the platform provide ongoing support for projects after launch? Quality launchpads help projects grow through follow-on fundraising, exchange listings, and community-building. CoinTerminal acts as an accelerator, not just a launch platform.

Usability

The interface should be simple and clear. You should not need a tutorial to join a sale.

Track record

Check how past projects performed. Consider ROI, token price stability, and delivery of roadmap milestones.

Network

Strong platforms have partnerships with VCs, market makers, and advisors. This adds credibility to the projects they host.

Security

Make sure the platform uses audited contracts, secure wallet integration, and infrastructure that prevents common attack vectors.

Final Thoughts

Crypto fundraising has undergone significant evolution since the 2017 ICO boom. As a response to the scams and lack of oversight from that era, IDOs emerged as a more secure and transparent alternative.

At CoinTerminal, we’ve designed a crypto launchpad that removes access barriers and makes it simple for anyone to support early-stage Web3 projects. No pre-sale KYC,  token gating, no staking requirements, and refund options if the token doesn’t perform as expected.

We’re glad you’ve decided to explore the DeFi space, and we’re here to support you along the way. Check our active IDOs and connect with our team on Telegram. We want to hear your feedback, learn what motivates you, and keep building a stronger Web3 ecosystem together.

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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