Binance is one of the most well-known crypto exchanges at the moment, with the highest crypto-only exchange monthly volume. Besides that, Binance has produced multiple features to diversify its products, one of which is Binance Launchpad. Since 2019, Binance Launchpad has offered IEO (Initial Exchange Offering) to totally 22 projects, with Axie Infinity reaching the highest ATH ROI of 1,543x.
In this article, I will introduce you to Binance Launchpad and how to participate in its IEOs.
- What is Binance Launchpad?
- Binance Launchpad review
- How Binance Launchpad selects a whitelist winner
- How to buy IEO on Binance LaunchPad
- FAQ about Binanc Launchpad
- Will BNB in Launchpool or BNB Vault count towards my participation limit calculation?
- When do I need to commit my BNB?
- What does the hard cap per user mean?
- Is my BNB locked during the daily average BNB calculation phase?
- Where is my committed BNB locked during the subscription phase?
- Can I commit my BNB even if my BNB is in Launchpool or BNB Vault?
- Is there a minimum amount of BNB that I have to commit?
- What country is allowed to purchase on Binance Launchpad?
- Can I use Binance Launchpad on the mobile app?
What is Binance Launchpad?
Binance Launchpad is the exclusive token launch platform of Binance - a famous crypto exchange in the South East Asia region. Although there have not been many projects to be launched on Binance Launchpad, their products have been of great quality.
As a result, Binance Launchpad has put its name on the map and gained massive interest in the community. More than helping projects to raise funds, Binance Launchpad supports them by providing advisory services together with its solid user network.
Binance Launchpad review
- Projects launching on Binance Launchpad have been strictly reviewed by Binance => high quality + receive support from Binance features and database => usually returning high ROI.
- Binance Launchpad produces an Anti-whale mechanism (Hard Cap per user) as well as a fair rule (hold more BNB => larger allocation).
- However, due to its equal distribution, committing a large amount of BNB can end up with a small allocation as there are too many participants => less attractive for investors.
- The ROI among different projects has a big gap. Some projects have a really high ROI like AXS (1,543x) or MATIC (1,003x), at the same time there are numerous projects with low ROI like PERL (4x) or TROY (7x) => unstable performance.
How Binance Launchpad selects a whitelist winner
To participate in Binance Launchpad IEOs, users have to commit a desired amount of BNB. The final allocation will be determined based on the total committed BNB by all participants combined.
The formula to calculate the allocation is:
Your committed BNB / Total committed BNB * Total tokens to be sold on Launchpad
Let’s put it in an example:
There are 100,000,000 ABC tokens to be sold, with 10 total participants. Consider a user spending 5,000 BNB in a pool of 105,000 BNB. There are 3 steps to calculate his/her allocation:
Step 1: This user would receive a ratio of 5,000 / 105,000 = 4.76% => 4,761,905 ABC offered.
Step 2: Nevertheless, we have to consider the Hard Cap per user. In this example, I’ll use 20,000,000 ABC tokens as the Hard Cap. The allocation after calculating the Hard Cap will be:
Step 3: As both user 1 and user 2 have reached the Hard Cap, 36,190,476 ABC tokens will be redundant. This amount will be distributed to other users, which can be calculated as:
This is the final conclusion for the token allocation.
How to buy IEO on Binance LaunchPad
In order to enroll in an IEO on Binance Launchpad, you have to prepare the following requirements:
- BNB: You have to commit your BNB to get an allocation.
- KYC: You have to pass the KYC test (also known as an identity test) in order to use Binance features.
Step 1: Go to the Binance website: https://coin98.xyz/binance-bnb
Click “Log in” to sign in your existing account, or click “Register” to create a new one.
Step 2: Click the “Chocolate menu icon” and select “Launchpad”.
Step 3: You can view current Token Sales here. At the moment, the Token Sale of “Lazio Fan Token” is ongoing on Binance Launchpad, so I’ll take it as an example. Click on the project.
Step 4: From here, you can join the IEO by committing your BNB (after passing KYC if you have not).
You can only commit your BNB in the Subscription Period (your participation limit will be an average of BNB in your wallet before the Subscription Period, usually about 7 days).
After the Subscription Period ends, you will get your allocation calculated in the Calculation Period.
You have successfully enrolled in an IEO on Binance Launchpad. In the future, you will be notified at the Final Token Distribution.
FAQ about Binanc Launchpad
Will BNB in Launchpool or BNB Vault count towards my participation limit calculation?
Yes, they will.
When do I need to commit my BNB?
Users only need to commit their BNB during the subscription period, which is after the average BNB calculation period.
What does the hard cap per user mean?
It means the maximum amount of tokens that a user can buy in that Token Sale.
Is my BNB locked during the daily average BNB calculation phase?
No, it is not.
Where is my committed BNB locked during the subscription phase?
It will be locked in a separate Binance Launchpad wallet.
Can I commit my BNB even if my BNB is in Launchpool or BNB Vault?
No, you cannot. Even though your BNB in Launchpool or BNB Vault can be counted in calculating your participation limit, you have to redeem them in order to commit in an IEO.
Is there a minimum amount of BNB that I have to commit?
Yes, which will usually be 0.1 BNB.
What country is allowed to purchase on Binance Launchpad?
Currently, the following countries/regions are not allowed to enroll in Binance Launchpad Token Sales:
Belarus, Mainland China, Democratic Republic of Congo, Cuba, Iraq, Iran, North Korea, Sudan, Syria, United States of America and its territories (American Samoa, Guam, the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands), Zimbabwe.
Can I use Binance Launchpad on the mobile app?
Yes, you can do that by clicking “Launchpad” in the main menu of the Binance app.
And that is all you need to know in order to participate in an IEO on Binance Launchpad. Hopefully, this article can effectively support users in using Compound with the Coin98 Mobile Wallet and the Coin98 Extension Wallet.
If there are any questions, please feel free to comment below or join Coin98 Community for further discussions about Crypto!