By 2027, the expected market value of cryptocurrencies is expected to reach $24 trillion, equivalent to 10% of global GDP. So, we can clearly say that digital assets are booming. Many companies use cryptocurrencies. For example, in the financial and technological sectors. Tesla and Square have invested $1.5 billion and $50 million in Bitcoin respectively, while giants such as JP Morgan, Citigroup, Wells Fargo, and PNC are implementing blockchain for the infrastructure to support various digital assets.
In June 2021, the number of global cryptocurrency users reached 221 million, up from 66 million in May 2020. In 2021, we saw very strong months of rising user numbers from January to April, with institutions such as PayPal, MasterCard, Visa, and MicroStrategy announcing that they would support Cryptocurrencies. All these new entrants to the cryptocurrency market want profit: all retail traders want a quick profit and institutional investors are looking for stable income and unicorn projects.
As the number of users grows, many new projects appear on the cryptocurrency market. All new projects face the problem of finding key investors, creating fear of missing out and a strong community.
It is possible to meet the needs of both types of players in the cryptocurrency market by participating in IDOs on private launch platforms.
Participating in an IDO may be profitable for investors most of the time, but at certain times it can be very difficult to search for a new x100 crypto gem.
What is a cryptocurrency launchpad?
Launchpad allows investors to invest their assets in new crypto startups at an early stage before they go public.
To understand how Launchpad works, you first need to understand how cryptocurrency startups raise money for their projects.
- A startup company launches a new product or service that it wants to develop.
- They create a token that will be a core part of their platform.
- This token is sold to early investors to raise funds.
- The token is issued on the public market. - Investors who bought the token at the lowest price and entered the project at an early stage made more money than those who entered at a later stage.
Is IDO always profitable?
Unfortunately, the answer to this question is no. Sometimes, pre-sale and IDO investors are forced to hold worthless tokens.
The price of a newly issued currency is very volatile, so money can be made or lost in a matter of minutes, hours or days. Users have to select the type of investment they want to risk, and participate in token sales.
As examples of cases with such situations, look at the IDO results of Crypto Puzzles with an ROI of -92,8% and Algo Painter with -82,8%.
This has happened for various reasons, such as the developer failing to provide liquidity or initially providing liquidity and then withdrawing it later (this is called “rug pulling”).
What is rug pulling?
Rug pulling is a situation where cryptocurrency developers abandon a project and run away with investors' money. Rug pulling sometimes occurs in the DeFi ecosystem, especially on DEXs, where malicious individuals create a token, list it on a DEX, and link it to a leading cryptocurrency such as #Ethereum
But once a large number of investors swap their ETH coins for the listed token, the creators then withdraw everything from the liquidity pool, pushing the price of the coin to zero.
How do you make sure you don't fall victim to rug pulling?
Decentralized exchanges like Uniswap algorithmically determine the prices of tokens in a pool based on balances. Check the liquidity of the project in its pool before investing and check if there is a lock on the token pool for a certain period. It is not possible to do this all the time, because not every project adds liquidity to the pool before the IDO.
Even if a project seems reliable and trustworthy, and even if it has well-known investors and companies, it does not guarantee positive results. Coin creators may create a temporary buzz around Telegram, Twitter and other social media platforms and initially inject a large amount of liquidity into their pool to grow investor confidence and drive fear of missing out that prompts more people to invest in the token.
How do we protect clients and investors from IPO risks?
Based on the principles of complete transparency and understanding the needs of investors, the FLy team developed the Launchpad platform that provides its users with high-risk protection in the volatile DeFi investment space. The FLy ecosystem, powered by the Franklin utility token (FLy), acts as the fuel that fuels the platform. FLy is a utility token with a real purpose: keep FLy tokens for risk-free access to Launchpad and IDO, which is a distinct advantage compared to other Launchpad platforms. FLy token holders also get access to solutions like Copy Trading for API trading produced by quantitative trading algorithms, FLyDEX for traders, FLy token solutions like storage and farming, network bridge, and more to come.
IDO is risk-free on the FLy platform. Case Study.
As mentioned earlier, an IPO can be risky for investors. For this reason, it is very important to participate in this type of investment using the right platform, which guarantees maximum benefits to the investor community and protects its clients.
For example, on August 5, 2021, a project called CFL365.Finance received an initial demo of its code on the FLy Launchpad platform. The initial pitch was fully deposited within 30 minutes of starting and closed with an earned deposit amount twice the necessary amount. Unfortunately, the performance of the $CFL365 token did not fit the risk management profile.
FLy cares about the community and to keep the community in profit, they have stopped distributing tokens. To ensure the FLy community from losses, all USDT tokens that participated in the IDO were opened.
Furthermore, FLy Launchpad participants received an airdrop of $365 worth of tokens for free according to the amounts of FLy tokens in their wallets. FLy Launchpad is risk-free, so the team doesn't leave its community without a refund if the project performs poorly.
About Fly Launchpad
FLy Launchpad helps project teams and advises them on how best to attract communities and increase the number of investors to successfully launch their token. Launchpad provides a full fundraising service, from consulting to post-listing support, marketing and market making.
The FLy team is looking for strong projects with a unique and innovative vision in the crypto space.
The FLy community enjoys the opportunity to invest in high-quality projects with good conditions, which are similar to institutional seed and seed rounds.
FLy Launchpad offers completely risk-free IPOs and creates a win-win situation for both projects and investors.
Well, let's talk about how FLy Launchpad works:
1. FLyECO collects projects from the market and its network of institutional investors.
2. If the project is qualified, attracts investments from famous venture capital firms, has excellent reputation and market potential, then this project can get an IPO on the FLyECO launch platform.
3. Once the project is approved to be launched on the launchpad, it provides FLyECO with IDO tokens.
4. Community members can then submit offers for the amounts they wish to invest. Based on the offers, FLyECO calculates and announces the amount allocated to each participant.
5. An independent process takes place, where a confirmed amount of funds is sent to the IDO (project) and we distribute the project tokens among the participants.
6. Once an investor adds funds to the FLy Launchpad pool, the FLy team monitors the token price after listing. If the token price upon listing is not higher enough than the IDO price, FLy Launchpad refunds the full amount (+ project tokens) to launchpad participants! Yes, it's unique and risk-free!
How can I participate in FLy launchpad risk-free? What are the requirements?
The requirements are very simple and affordable – you just need to hold at least 10,000 FLy tokens. These Fly tokens can be invested in FLy Staking or FLy Copy Trading.
Furthermore, FLy Launchpad has a simple layering system:
If a user has between 10,000 and 50,000 FLy, they can participate in IDOs.
If the user has from 50,001 FLy to 200,000 FLy, we guarantee the minimum allocation in the IDO risk-free.
If a user has from 200,001 FLy to 500,000 FLy, we guarantee the maximum allocation in a risk-free IDO.
If a user has more than 500,001 FLy, they will be whitelisted in the risk-free IDO.
New projects can raise millions of USDT within a few hours and achieve excellent results for early investors. FLyECO has envisioned an algorithm that rewards early adopters on the platform, and thus, it is a value FLyECO is actively pursuing. However, the platform does not create high entry barriers for latecomers. A complete list of recent and upcoming IDO projects is available on the official FLy Launchpad website.$NOT
