🚀What is an IDO launchpad?

An IDO launchpad stands for "Initial Decentralised Offering" or "Initial DEX Offering", this is a platform where new web3 projects can launch, distribute their token, and raise funds from public investors. Users can have a chance at investing early in projects at a deep discount prior to their launch on the market.

But if we were to summarise an IDO launchpad simply: A launchpad is a trusted intermediary, or a "matchmaker". The launchpad matches new projects with public investors who are looking to invest their money.

It can be difficult for public investors to know where to begin or where to put their money, and they don't always have the contacts to get into earlier rounds, or the knowledge and access to thoroughly vet launch projects. Most of the time they rely on recommendations from influencers, social media, and friends and family.

This is where this trust piece comes in (Keep in mind, not all launchpads are created equal in this regard). The launchpad rigorously vets projects that it presents to public investors, and also publishes some open research for users to see.

When the launchpad model is done well, and quality projects are brought to the table, this creates trust for users that this is a good place to look when investing their money into new projects. (with proper research still) When the reputation is good, it leads to a bigger and stronger community, and in turn better access to top-tier projects on behalf of the community.

A stronger community also leads to more bargaining power with projects for a good deal on launch. The users entrust the launchpad to bring great projects, and a reputation is built. (this can also go both ways in the case of poor vetting or dealflow)

For the project launching on the pad, it's really all about initial customer acquisition.

Sure, elements such as raising funds and token distribution are key. But the big piece for a launchpad is tapping into a solid base of consumers from day one who have some skin in the game, and who invest and form a decent base of users from day one. The token model can help with this, selecting and vetting users to give greater benefits to quality users.

The better the reputation of the pad, the more users are attracted, and often the better the quality of users. (Pads that launch pump and dumps often attract really poor users, and this is a shortsighted way to build)

A good launchpad acts as a megaphone, attracting a variety of users from different ecosystems and non-DeFi users as well.