What is Binance Launchpool? Guide to Participating in Launchpool on Binance

Table of Contents

What is Binance Launchpool?

Binance Launchpool is a token fundraising and distribution platform by the world’s largest cryptocurrency exchange, Binance, launched in September 2020. Since its inception, this feature has quickly become one of the highlights in the crypto market, allowing users to stake assets on Binance to access attractive earning opportunities.

When participating in Launchpool, users typically use assets such as Binance Coin (BNB) and FDUSD for staking. During this process, investors can optimize the returns on their available assets by staking and receiving free tokens from projects on Binance Launchpool.

As of mid-July 2024, there have been 55 projects operating on Binance Launchpool, including notable names like IO, OMNI, REZ, and SAGA.

Joining Launchpool is not only a way to leverage unused assets for investment but also an opportunity to discover potential projects.

Benefits of Binance Launchpool

Receive free new tokens: Users can receive free new tokens by staking BNB or other supported tokens in the pool (usually FDUSD and TUSD). The amount of new tokens received depends on the amount staked. To participate in Launchpool, users need a Binance account (KYC verified) and at least 0.1 BNB or other supported tokens in the pool.
Flexible mechanism: When participating in Launchpool, users stake their tokens to receive new project tokens. The new tokens will be credited to the user’s wallet at the end of the staking period. Users can withdraw their staked cryptocurrency back to their wallet at any time and manage their assets flexibly. Through this process, users can optimize the returns on their existing cryptocurrency assets by simply staking to receive free tokens from participating projects in Launchpool.

What do projects gain from joining Binance Launchpool?

Just like users, projects participating in Binance Launchpool also gain numerous benefits.

Promotion and access: The project will be promoted and reach millions of investors worldwide. With Binance’s massive user base, any project appearing on Launchpool can access this potential user base.
Connect with the Binance ecosystem: The project will connect with Binance’s extensive ecosystem of products and services, receive product consultation, token issuance advice, and marketing campaign support from Binance.
Increased credibility: Participating in Launchpool also boosts the project’s credibility among investors, as Binance Launchpool has a rigorous vetting process involving multiple evaluation steps.

How to Participate in Binance Launchpool

To participate in Binance Launchpool, the first step is to prepare a KYC-verified account (the KYC process requires an ID card, Passport, Selfie, etc.). If you don’t have a Binance account, you can register via the link below.

Open a Binance Account to Join Launchpool!!!

Step 1: On the Binance interface -> go to “More” -> Launchpool. https://accounts.binance.com/register?ref=893609653

Step 2: Choose a project to join Launchpool (at the time of writing, no projects are currently available on Launchpool, the most recent one being IO). Users only need to stake BNB or FDUSD to participate. After the Launchpool event ends, you will receive a number of project tokens corresponding to the amount of BNB or FDUSD you staked.

Who should participate in Binance Launchpool?

Binance Launchpool or Binance Launchpad is not suitable for everyone. If you buy BNB only to participate in staking and sell immediately after Launchpool ends, you could incur a loss due to the drop in BNB price, as the rewards received may not offset the loss from selling BNB. Therefore, you should participate if:

You are a long-term BNB investor: Binance Launchpool is essentially a reward for BNB holders. If you only participate in a few launchpools, the rewards will be insignificant, but if you hold BNB and participate over many years, the returns can be substantial.
You have a lot of idle FDUSD:

Additionally, there are many guides on borrowing BNB to participate or using leverage to optimize efficiency, but these are very risky. So, please consider and research thoroughly before using these methods.

Conclusion

Through this article, we have introduced what Binance Launchpool is. If you have any questions, please leave them in the comments section!