What to Know Before Using an IDO Launchpad

Written by
Catherine Andrea Gerdez
Published on

August 25, 2025

Updated on

August 25, 2025

So you’re new to the crypto space. Maybe you’ve just started swapping tokens on a DEX. Maybe you’ve only used Binance. Or maybe you landed on this page because you’re curious about how people get into early-stage token sales.

Wherever you’re at, it’s okay to feel a little lost. Everyone starts somewhere.

The truth is, participating in IDO launchpads is a powerful way to access early Web3 projects with high growth potential. And when done right, it can be one of the safest ways to invest in crypto.

IDO launchpads offer early access to crypto tokens, but understanding how they work and what to expect before joining is key to investing wisely.

What Do You Need to Participate in an IDO?

It depends on the platform.

But generally, there are a few basics you’ll need to get started.

First, you’ll need a Web3 wallet. This is where your crypto is stored and how you connect to decentralized platforms. The most popular wallets are MetaMask, Trust Wallet, or Phantom. Your wallet will let you sign transactions, receive tokens, and interact with the launchpad.

Next, you’ll need funds. Most launchpads require you to first buy their native token, which is then used to participate in the IDOs they host. But at CoinTerminal, we’ve made this simpler. You don’t need to buy or hold any special launchpad token. You just connect your wallet and participate directly using stablecoins like USDT or USDC.

Before putting money in, it’s important to have a strategy. Know yourself as an investor. What kind of projects call your attention? Do you have an exit plan? Are you planning to hold the token long-term or sell it after launch? Your investor profile matters.

And remember that launchpad tokens are also digital assets, which means they’re subject to volatility. That’s why CoinTerminal gives you direct access to the projects without requiring a separate token.

How Are IDOs Structured on Launchpads?

Launchpads follow a similar process when hosting their IDOs, giving users a clear path from discovery to participation.

Browse Upcoming and Live Projects

You’ll see a list of projects on the launchpad. Some will be marked as upcoming, others as live.

Upcoming means the project has been vetted and accepted, but the sale hasn’t started yet. When a sale is marked as live, it means the contribution period is open. That’s your window to exchange your stablecoins or launchpad token for the token of the project.

What Happens During the Token Generation Event (TGE)

The Token Generation Event, or TGE, happens soon after. That’s when the token is created and distributed to users who participated.

Tiered Access vs Lottery Systems

The exact model depends on the platform.

Some launchpads use a tiered system, where the more you invest, the more tokens you can access.

At CoinTerminal, we use a lottery system powered by Chainlink VRF. This way, everyone has a fair chance to participate. If your wallet is selected, you contribute your funds and receive the token allocation.

Refunds and KYC Requirements

In some cases, like on CoinTerminal, you also get the option for a refund if the token does not perform well after launch. That refund policy depends on the specific sale.

Some platforms may require KYC (Know Your Customer) before participating. At CoinTerminal, KYC is only required if your wallet is selected. This helps you explore freely without unnecessary friction.

Claiming and Trading Your Tokens

After the TGE, tokens are distributed and claimable. You’ll be able to access them through your wallet and use them however you want.

They’re typically listed on decentralized exchanges like PancakeSwap or Uniswap, where you can sell or swap them freely. Everything happens through smart contracts, making the process transparent and secure.

What Should You Look for in a Quality Launchpad?

First of all, make sure the launchpad is legitimate. We actually made a full blog on how to spot a legitimate crypto launchpad, so check that out if you haven’t already.

The platform should be listed on trusted third-party websites like CryptoRank or CoinGecko. You want to see how many projects they’ve launched and how they’ve performed.

Always compare launchpads. Each one is different. Do your own research, and if you need help, we have a comparison guide for that too.

What matters most is that the platform is safe, easy to use, and has open communication channels with their team. You should see a clear FAQ section and updated content that helps you navigate the process. And of course, the launchpad should be hosting IDOs that align with your interests and goals.

You want to look forward to participating and talking about the project. That’s a good sign you’re in the right place.

How Can You Tell if a Launchpad Is Reputable?

Start by checking if it’s listed on platforms like CryptoRank, CoinGecko, or any trusted comparison site.

Then take a look at the projects they’ve supported. What happened after the launch? Did the tokens keep their value? Were those projects actually successful?

That tells you how good the launchpad is at picking winners, not just hyping them up.

Also check if the team is visible. Do they have audit reports? Are they being mentioned in crypto media or news sites? A launchpad that is known and talked about in the space usually has earned that reputation by doing something right.

Reputation is not about marketing. It’s about results.

How Do You Stay Informed About Upcoming IDOs?

Follow the launchpad’s official channels. Telegram and X are usually where they post the most up-to-date information. But the website is where you’ll find everything in one place.

If you’re actively participating in a sale, make sure to check the website regularly. Contribution periods, claim times, and TGE dates are time-sensitive. Missing those can affect your experience.

Set a calendar reminder or an alarm so you don’t miss your window to contribute or claim your tokens.

In IDOs, timing matters a lot.

Is an IDO Launchpad Right for You?

Every savvy investor should consider using a launchpad.

It’s one of the safest and most beginner-friendly ways to find early-stage crypto projects. The trends we see in Web3 today often become the foundations of the crypto space in the next few years.

If you care about where technology is going and want to be early to the next big thing, this is where you should be looking.

A good launchpad helps you discover what’s next before the rest of the market catches on.

Final Thoughts

Understanding IDO launchpad as an investor is a crucial aspect when choosing the right project. Beginners in the crypto space should gain insight into terminology, projects that interest them, and how to get the right wallet to be successful.

To learn more about the projects we support, explore our active IDO sales. If you have any questions, please don’t hesitate to contact our team through Telegram.

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.

Frequently Asked Questions

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