Binance is not only the world's largest exchange but also offers many outstanding features that allow users to earn attractive profits. One of the exchange's potential passive money-making methods is Binance Launchpool. So what exactly is Binance Launchpool? Today, let's find out with Coinmoi.
What is Binance Launchpool?
Binance Launchpool is a platform launched in September 2020, allowing users to Stake BNB or other Token supported in the pool to receive new Token listed on Binance for free.
As of the first half of 2022, there were 29 active projects on Binance Launchpool with outstanding annual returns such as PSG on CHZ pool with 113%, MC on MC pool with 85.86%, and MBOX on MBOX pool with 56.43%.
By choosing to offer Token on Binance Launchpool, crypto projects receive many benefits such as:
- Increase reputation thanks to Binance's strict review and censorship process.
- Reach a huge user base on Binance.
- Increase Token liquidation and adoption by connecting to the Binance ecosystem.
- Use Binance's marketing resources.
Binance Launchpool's operating mechanism
Staking : Users pledge a specific amount of supported Token , typically BNB, FDUSD or other cryptocurrencies, to a pool. During this time, users will earn rewards in the form of new Token launched on the platform.
Reward distribution : Rewards will be distributed proportional to the number of Token each user has Stake. Users can also choose to automatically reinvest their rewards to accumulate more.
Trading : After the Stake period ends, users can receive the earned Token and participate in trading. This Token will be listed on Binance according to the time shown in Launchpool and users can trade the earned Token .
Benefits of Binance Launchpool
Benefits for users
Get new Token for free: Users can get new Token for free by Stake BNB, FDUSD, TUSD, or other supported Token in the pool. The number of new Token received will depend on the amount of Token the user Stake.
Flexible mechanism: Users can also withdraw the Stake cryptocurrency back to the wallet at any time, helping to manage assets flexibly. This allows users to maximize returns on available Cryptoasset simply by Stake to receive new Token for free.
Benefits for the project
Like users, projects participating in Binance's Launchpool will also receive many great benefits:
Promote and reach millions of investors: The first and biggest benefit is that the project will be promoted and approached to millions of investors around the world. With a huge number of users, any project that appears on Launchpool can reach this potential user base.
Connect with Binance's extensive ecosystem: The project will have the opportunity to connect with Binance's extensive ecosystem, including the exchange's products and services. Binance will advise on products, Token Issuance methods and support project promotion campaigns, helping the project develop comprehensively.
Increased reputation: Participating in Launchpool helps the project increase its reputation in the eyes of investors. Binance Launchpool has a rigorous moderation process with multiple review steps, ensuring that only high-quality projects appear on the platform.
Increase project holder : Thanks to access to a large user community, the project easily has a skyrocketing number of holder .
Marketing resource support from Binance: Projects participating in Launchpool will benefit from Binance's marketing resources, including powerful promotional campaigns and access to major media channels. This helps the project quickly gain attention and interest from the community.
Distinguish between Binance Launchpool and Launchpad
Similarities
Support from Binance: Both platforms receive exclusive support from Binance, including consulting on Token Issuance and marketing strategy.
Increase profit opportunities: Both platforms aim to increase profit opportunities for users and support the growth of new cryptocurrency projects.
Supporting the cryptocurrency ecosystem: Both Launchpool and Launchpad support cryptocurrency startups, helping projects promote effectively and get closer to investors.
Bring significant Capital : Both platforms can bring significant Capital to projects, while creating opportunities for investors to participate in the best quality projects.
Differences
Binance Launchpool
Get Free Token :
- Users can get new Token for free by Stake available crypto assets such as BNB, FDUSD, and TUSD.
- The number of Token received depends on the number of assets the user Stake and the total amount of assets in the pool.
Flexible mechanism:
- Users can Stake and unstake assets at any time.
- Token rewards are calculated hourly and can be claimed or withdrawn at any time.
- After 7 days of farming , the Token can be traded on Binance.
Participation conditions: Users need to have a KYC Binance account and own a minimum of 0.1 BNB or other Token supported in the pool.
Binance Launchpad
Buy IEO:
- Users are eligible to purchase the Initial Exchange Offering (IEO) based on the amount of BNB they hold and pledge.
- Binance will calculate the amount of BNB users hold in their Binance wallet within 8 days before announcing a new IEO.
Token registration and distribution process:
- Users register the number of BNB they own in their spot wallet to participate in Launchpad.
- Binance calculates the amount of BNB used to purchase Token and distributes the new Token to users' spot wallets.
- The portion of BNB not used to purchase Token will be returned to the user.
How to join Binance Launchpool
Step 1: Create a Binance account and complete the Know Your Customer steps
Step 2: At the Binance homepage, select “More” then select “Launchpool”.
Step 3: After accessing Binance Launchpool. Select the project the user wants to Stake. Then, select the pool users want to join.
Step 4 : Choose the amount of assets you want to Stake. Click Stake Now.
The Stake assets and newly farmed Token will then be automatically transferred to the user's spot wallet.
summary
Hopefully through this article, you have grasped the basic information to join Binance Launchpool. Investing in the cryptocurrency market is always risky, so do your research carefully before making an investment decision.
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The article What is Binance Launchpool? Instructions for joining Binance Launchpool appeared first on CoinMoi .
