Crypto Launchpads Buyer Protection: An Evaluation of The Best Options

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Since regulations on regulation and investor protection are still not fully defined within the Web3/crypto industry, many malicious parties have taken advantage of this to the detriment of private token holders.

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As a result, it has become clear that, as a gateway to the wider distribution of multiple blockchain protocols, Launchpad needs to do more than just coordinate IDOs.

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By taking proper precautions and employing appropriate buyer protection measures, these platforms play a big role in expanding the market to early adopters and investors, and in driving mass adoption within the industry as a whole.

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For Launchpad market security, the purpose of this article is to explore the security mechanisms that the four major Pads are implementing to protect their respective communities.

plant seeds

Seedify doubles as an incubator and IDO launchpad focused on blockchain games.

Launchpad runs on Binance Smart Chain and allows $SFUND holders to earn tokens from successfully incubated projects as a source of additional passive income.

Seedify has implemented several clauses to protect its community from malicious projects.

One feature worth noting is its Sidify Protected LaunchWhich was recently announced covering every token launch on the platform.

According to this new protocol, Seedify projects must adhere to their delivery times and penalize other parties that offer tradable tokens before the Seedify community claims time.

Furthermore, Seedify will require at least liquidity for at least 24 months, in order to protect its community from pulling the rug and other potentially negative events.

Another way to differentiate Launchpad quality projects from untrusted ones is by completing token security audits, ensuring there is no evidence of blacklisting or ‘honey pot‘ is revealed in the project’s token contract.

Each project is also accountable for its pre-launch and post-launch marketing strategy and initial roadmap.

gamefi

GameFi is a play-to-earn yield guild and IGO launchpad, which allows its users to participate in buying IGO tokens.

GameFi gives their community access to in-game assets.

BSc/Polygon holders can use Guild tokens to fund gameplay through scholarships.

GameFi’s investor-first approach is contained within its one-hour refund policy, which allows investors to cancel their support for a project if they so choose.

Here, the rules are simple.

Once a member participates in a public token sale on the GameFi Launchpad, they can make a claim request (on their purchased token) or notice a detail within the project if they have made a mistake or feel uncomfortable. If so, they can get a refund.

dao creator

Through community funding, Dao Maker minimizes investor risk while providing protocols and cryptocurrencies with opportunities for incubation and development.

Dow Maker has a structured financial product named enterprise bondWhich benefits investors in three ways:

  • Buyers receive bonds directly from the startup.
  • Funds generate interest, which buyers can swap for early-stage equity or tokens.
  • The buyers receive their principal amount at the maturity of the bond.

While these venture bonds only generate between 8 and 10% interest, they work well as a way to protect investors.

through Yield ProtocolDAO Maker users can use an open-source toolkit, called YieldShield, to manufacture farm agricultural products.

Users can employ algorithmic DeFi strategies in take profit yield forms, deposited currency functions and stop-loss yield forms to protect themselves from losses.

In this way, token holders can still make profits even if the underlying asset does not perform as expected.

DAO Maker also has a secure ‘Token Sales’ program that refunds participants whenever the price of their invested token falls below its IDO level during the initial two months.

polka start

Polkastarter is a decentralized exchange based on Polkadot that allows projects to conduct cross-chain token pools and auctions.

Since the Polkastarter went live in 2020, the DEX has implemented a number of features to protect its users, such as password-protected pools and counter-measures to protect against malicious pools and bots.

cooperaterThe partnership with the platform enhances its anti-scam features by providing rich data about projects, transactions and even historical data on tokens and wallets.

Smart contract information and verification reports help token pool creators and potential buyers to evaluate information such as token contract age, proxy patterns (used to detect potential rug-bridges), contract verification, and more.

This helps determine the credibility of each token before anyone buys it.

Users also benefit from anti-slippage measures, which borrow from the DIA’s technology for a built-in price alert system to warn users if current prices are too high, or if a particular trade will drop significantly. .

gamestarter

GameStarter has established itself as one of the most innovative layer-2 solutions with audited smart contracts (ETH, BSC, SOL and Polygon), fractionalized NFTs and liquidity pooling solutions.

What makes GameStarter unique is that it offers a fairly complete Web3 ecosystem:

  • Token launchpad with NFT-based marketplace to help fund raising.
  • A project incubator and accelerator for successful product launches of other projects.
  • GS Studio, an in-house game development studio.

So far, Gamestarter’s new launch PROcean Protocol It appears to be the most comprehensive in covering its community and ensuring that it does not commit malicious acts.

To guarantee legitimacy, GameStarter has a listing team that conducts extensive research on projects looking to add to their launchpads or incubations, ensuring that each launch is compliant, feasible and fully audited. .

Some updated security protocols will only help enhance Gamestarter’s community security when participating in IDO:

  • To avoid pump and dump activities and delayed vesting, new projects are requested to send all their tokens to Gamestarter at least 24 hours prior to GameStarter from IDO to TGE and to be distributed during the following vesting period .
  • Gamestarter will issue refunds to token buyers in case of poor performance between token generation and the following weeks (for full details, see here,
  • To guarantee an added additional layer of security, and to avoid token price fluctuations, token listings will be allowed on GameStarter no later than 7 days after the last day of the IDO.

The thorough scrutiny each project undergoes, along with the launch of its updated security policy, makes GameStarter a safe option for potential buyers.

The stakes are only getting higher…

Even in such a crippling bear market, aspects of blockchain, such as the gaming niche, are experiencing bullish runAnd doubts are looming about whether blockchain can essentially disrupt traditional industries.

However, for blockchain projects to flourish, projects must demonstrate that they are sustainable for the entire communities they are committed to, and launchpads, as we have seen, are playing and playing a big role in this narrative. Will perform

The insights from this article demonstrate how current industry leaders are implementing a community-first approach to protect their members.

Nevertheless, as the number of projects continues to grow, more will need to be done to further protect buyers and communities from the effects of this over-exposure.

Image by David Mark from Pixabay



Credit : www.newsbtc.com

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