The Power of Cross-Chain Launchpads

Published in

Lupa X Capital

3 min readMay 3, 2021

What are Launchpads?

The growth of DeFi has introduced to the market an ever-increasing flow of new projects, and investors. These new projects have driven demand for financing, and the new investors for early investment opportunities.

New DeFi projects require working capital and, as individual retailers seek to become early investors, Launchpads such as TrustPad and Cardstarter have provided a platform for these two parties to mutually benefit from each other.

Launchpads aim to achieve this by providing a platform where projects can raise capital, and individuals can invest early, and safely.

Launchpads have introduced platforms to stake native-tokens, and in doing so investors are rewarded with early investment opportunities proportional to the amount they have staked via private Initial Dex Offerings (IDOs).

This mutually beneficial relationship has made Launchpads an integral component in the current DeFi ecosystem. Launchpads have become not only an important outlet for projects to receive capital, but also to communicate, and interface with their early investors.

Direct (and early) interaction with investors not only gives projects access to strong, and supportive communities accelerating project growth significantly, but more importantly, the network effect within these growing communities makes raising capital quicker, and much easier for projects.

Investors benefit by receiving early access to token launches without needing to put up large sums of capital.

Additionally, Launchpads such as TrustPad and Cardstarter guarantee the safety, and legitimacy of all the projects on their platform with thorough project vetting. Thus, investors are provided peace of mind that they are protected from rug pulls, and other scams. We are even seeing projects such as Cardstarter provide insurance funds to further protect investors.

With this increased safety we see an increase in legitimization as it becomes very difficult for people to criticise the legality and legitimacy of new projects if they are backed up by a reputable, institution-like Launchpad. The reputation of DeFi being a dodgy niche sector is therefore slowly being transformed into one that it is a secure and attractive to the retail investor.

Why are Cross-Chain Launchpads Significant?

The latest innovation in Launchpads is Cross-Chain integration, allowing projects to launch their IDOs simultaneously on multiple different Blockchains.

Cross-Chain integration enhances the building effect that Launchpads can provide for projects by giving users from multiple different chains access to them. This greatly reduces the barrier to entry. Cross Chain integration also immediately expands the market pool of investors for projects allowing them to raise much more capital.

Cross-Chain communication will also prove to deepen network effects as users interact with others across chain, and the community of the project itself has a greater chance to develop sustainably, and continuously.

TrustPad is the first Launchpad to utilize a Cross-Chain feature with the goal of making IDOs easily accessible for new adopters, and mass markets. TrustPad will include integration of Binance Smart Chain and Ethereum from day one with a clear goal to integrate Solana, Polkadot and Cardano by the end of 2021.

What this means, for an example, is that upcoming IDOs on TrustPad will be able to launch on both Ethereum, and Binance Smart Chain simultaneously.

By being the first safe Cross-Chain Launchpad, TrustPad is likely to become a dominant player in the market, and therefore play an integral part in the “DeFi revolution”.

Summary

Launchpads have proven to play a crucial, and growing role in the DeFi ecosystem, benefiting projects and investors alike. We believe the innovations in Cross-Chain integration that Trust Pad brings will only amplify these advantages, strengthening the community building effect and enhancing the accessibility and legitimacy of the DeFi space for new investors.

We believe that projects such as TrustPad will separate themselves from the pack and assert themselves as market leaders in the future, making them very desirable investment opportunities.