In recent years, crowdfunding has emerged as a popular financing and fundraising method, allowing a large number of investors to participate. Crowdfunding, as a unique fundraising technique, is part of the ongoing financial innovation that seeks to support disruptive ideas and give rise to new ventures.
Crowdfunding has also undergone profound changes as a result of the revolutionary impact that blockchain technology has had on the financial industry generally. Since the 18th century, the only trusted way to crowdfund has been through initial public offerings (IPOs), which give backers a piece of a company’s future success in exchange for an upfront investment. With the advent of blockchain technology came a new way to fund innovative ventures and startups: initial coin offerings (ICOs), which added a layer of transparency and credibility to the entire process. Crowdfunding campaigns using ICOs have been touted as a viable option for blockchain-based projects seeking to acquire capital for the creation of their products and services.
Once Upon a Time in Crypto: Flashback⚡
Crypto crowdfunding in its most nascent form dates back to 2013 when the founder of Mastercoin (now Omni), J.R. Willett, first coined the term “ICO”, a type of Kickstarter on the blockchain. He launched the very first ICO and successfully raised $600K. After this, a slew of projects launched their ICOs. Then comes the real deal: Ethereum, the GOAT and one of the most successful ICO projects of all time. After the launch of the Ethereum blockchain, thousands of tokens were launched on top of the Ethereum blockchain. Then came the ICO era, when cryptocurrencies saw a crazy bull run that drove huge, multi-fold growth in a fraction of a few days.
As per the data provided by Elemento, from January 2014 to August 2018, the total fund raised in token sales reached a whopping $28 billion.
Present Day: Back to the current scenario
During those early days of ICOs, Ethereum and Bitcoin were the two most prominent blockchains. However, with the advancement of technology, hundreds of blockchain networks, thousands of tokens, and millions of crypto users have sprung up.
Interoperability is required because projects that work on or support single blockchains are constrained and restrict users’ ability to explore. For projects and investors to succeed, the Multichain Launchpad is essential.
The cryptocurrency fundraising method and platforms have evolved over time to meet the ever-increasing demand of the ever-expanding community.
Crypto Crowdfunding and its Types
Numerous crypto crowdfunding methods have been invented and used successfully since the inception of cryptocurrency. Simply put, “crowdfunding” is the practice of raising funds for a project or business venture by soliciting contributions from a large number of people, each of whom contributes a small amount. To raise capital for a crypto venture, the project must have a crypto token to launch a crypto fundraising campaign.
What is Launchpad?
Launchpad is a blockchain-based platform to facilitate token sales. Crypto launchpads make it possible for blockchain-based businesses to raise capital and sell tokens to investors at an early stage. The early-stage investment provides investors with a discount before the market launch. Because launching on a crypto launchpad is secure, convenient, and cost-effective, more projects are using them to raise money.
Using a launchpad protects entrepreneurs and investors. Top crypto launchpads thoroughly evaluate projects using strict due diligence and follow KYC (know your customer), and AML practices for new users.
Launchpad uses a blockchain-based model to allow investors to participate based on their allocated pool. Every blockchain project has its own native token, just like Ethereum’s ETH and Asva Labs’ ASVA token, which is used to engage with and receive project benefits. Tokens are typically traded for value because they represent a proportion of ownership, much like shares in the conventional stock market.
Types of Crowdfunding Methods:
- IPO ( Initial public offering)
- ICO ( Initial coin offering)
- STO ( Security token offering)
- IEO ( Initial exchange offering)
- IFO ( Initial farm offering)
- IDO (Initial dex offering)
- IMO (Initial metaverse offering)
- IGO ( Initial game offering)
The Next-Gen Crowdfunding Platform — Multi-chain Launchpad
Gone were the days when the crypto space was only known for bitcoin and Ethereum. The open-source nature of blockchain technology has brought about Solana, BSC, Cardano, Polkadot, Avalanche, and other blockchain platforms that perform better than Ethereum in scalability, gas fee, speed, and transaction fees.
In these blockchains, a slew of new crypto-based initiatives have emerged, and as audience growth is crucial to their success, they need to reach out to more people to secure funding. When the IDO is released on a launchpad that caters to the projects and users of a single blockchain, it will not reach as many potential investors. The advent of multi-chain IDO launchpads was a direct result of this need. This serves as a central hub where users of different blockchains may come to find promising new initiatives. However, it aids the initiative in attracting a larger audience.
Multi-fold Perks of a multi-chain launchpad
Scalability: Scalability was long touted as one of the roadblocks to widespread adoption. The crypto community has now reached nearly 1 billion but the early blockchain infrastructure isn’t well equipped to process such high number of requests, this gave rise to new blockchain solutions and platforms. Launchpads with support for multiple chains are an important step toward realizing their potential for scaling. This entails being able to sustainably serve a large and ever-expanding user base.
Accessible to All: A smarter choice for any builder would be to build on a scalable chain, even if it meant sacrificing on user base, if one blockchain had a large user base but was plagued by congestion, high fees, and long queues. The Multi-chain Launchpad solves this problem by bringing together users of various blockchain networks. This not only allows projects to reach a larger investor base, but it also allows the community to access promising projects across blockchains.
The key to the industry’s continued growth will be cutting-edge solutions that successfully consolidating the market by enabling seamless and secure cross-chain accessibility. Multi-chain launchpads enable interoperable solutions to prosper and benefit the community.
MetaLaunch Multi-chain Launchpad for Web3 and Metaverse
MetaLaunch is a multichain launchpad that supports Ethereum, Polygon, and Binance Smart Chain — three of the world’s major blockchain networks to give the community access to outlier token deals across chains and liquidity access to brilliant crypto projects. MetaLaunch will expand its multi-chain network by integrating additional blockchains. Metalaunch’s multi-chain capabilities are designed to increase the platform’s utility for both builders and investors.
The MetaLaunch council carefully screens and hand-picks projects for the launch after conducting comprehensive due diligence to ensure the highest quality projects. The MetaLaunch launchpad has deployed an IDO protection and refund policy to provide protection to launchpad investors and the community on their token investments. The refund policy has been designed in the community’s interest after extensive discussions and considerations.
The MetaLaunch is a multi-chain metaverse and Web3 Launchpad enabling promising builders and top-notch projects to raise capital while offering outlier deals to the community. MetaLaunch projects are rigorously vetted and hand-selected by the MetaLaunch council to ensure the highest quality projects.
MetaLaunch allows the community to discover and invest in projects that have the potential to be transformative. The Launchpad assists projects listed on the platform in thriving by leveraging the multifaceted domain experience of the MetaLaunch team and advisory.