Tutorial: Understanding the Differences Between Binance Launchpad Vs Launchpool And How to Use Them

So many traders an Investors in the crypto markets may have heard about these two words Launchpad and Launchpool, either from when they crypto journey began or just recently. The good thing is that it doesn't matter whether you have heard about the two affomentioned words before or you are just hearing about them for the first. Some crypto traders/investors are often confused about the differences between Binance Launchpad and Binance Launchpool which is what we are going to be looking at in this tutorial.

Edited with Flyer Maker

However, before going through this post, I will like you to know about how Crypto Staking And Flexible Savings Works on Binance exchange which was my previous lesson. Knowing about this will help you to understand Binance Launchpad and Launchpool fast since they both deals with staking.

Binance exchange as we all know is one of the leading cryptocurrency exchange in the world that has built its own blockchain technology which is known as the Binance Smart Chain (BSC). Aside the Binance Smart Chain, Binance has all the popular products that allow you and I to earn some passive income when we make use of its numerous financial services that are both traditional service and decentralized finance (DeFi) service that is offer by Binance, which some of us are not aware of.

However, this topic is center about Launchpad and Launchpool which are the two platforms that is used to support and create an awareness for a coming up blockchain technology that is promising. But the questions is between the Binance Launchpad and Launchpool which one is used to support promising blockchain that is startups and what do you gain from supporting these startups blockchain? This are all what we are going to be looking at in this tutorial. For a better understanding let's take these two words Launchpad and Launchpool one after another.

What is Binance Launchpad?

Binance Launchpad is known as the exclusive token launch platform of Binance that assists blockchain startups in raising funds for projects that is new. Binance specifically launch this platform to support promising crypto ecosystem, so that their projects can widen its reach of Investors by allowing them to be the first to access to projects that are of quality. Several token that was launched on Binance Launchpad have generated more than 30× Return of interest (ROI) to Investors.

For a Binance Launchpad Investors or Binance users basically participate in an (IEO) initial exchange offering. For those that do not know what is IEO, I will explain it briefly to you before we continue. Initial Exchange Offering (IEO), is known as a cryptocurrency fundraising model where the crypto projects receives the backing and support of an exchange like Binance, Kucoin etc. The aim is to help crypto Investors to discover crypto projects that are promising before they are launch in the market.

We can see that it is through a Launchpad that Investors get to know about crypto projects that are good. One of the main reasons why Investors always seeks to invest in an IEO through a Launchpads is that they usually provide Investors a massive gains. For an example, the BitTorrent token which secured more than $7,000,000 million dollars within a minutes when it was launched.

However, in the Binance Launchpad there is what is called "Binance Fan Token" which I will like us to understand how it works.

How Binance Fan Token Launchpad Work
On the Binance Fan Token, once a brand or team is featured on the Binance Launchpad platform, their tokens will be listed on the Binance Launchpad platform, making it availabe for Investors and all Binance users including you and I to participate in the token offering. (I.e it is specifically for any users that is interested in the team).

In the Launchpad platform, there is a format of subscription which allows holders of BNB token to commit an amount of their BNB token towards the sale of the Binance Fan Token. The allocation of the new token at the final stage is determined by the ratio of the amount of BNB that is committed against the total amount of BNB that is committed by all users that participated.

How to Access Binance Fan Tokens

Here I will be showing you how you can get Binance Fan Token on the Binance Launchpad platform, both on the website and mobile app.

How to Get Fan Tokens on Binance Website

Step:1 The first thing you are to do is to Sign up for a Binance Account and complete and complete your verification of you haven't done so, but if you have done so head straight to the step below.

Step:2 Go to the Binance Fan Token Platform or login to your Binance and click on the navigate button and click on "Launchpad" an explore new Binance Fan Token that is listings under the "Derivative" section.

Step:3 Select the team token that you like for example we can see STEPN which has already finished.

Step:4 Commit BNB to your preferred pools. Here you will be allow to commit and lock any amount of BNB up to your participation limit so you can receive the Binance Fan Tokens.

Step:5 Calculate,your BNB as soon as the BNB commitment period is over. As soon as each user's final token allocation for 1 hour.

Step:6 This is the step where your BNB will be deducted for Binance Fan Tokens. As soon as each user's final allocation is determined,part of your locked BNB will be deducted in form of exchange for the tokens. Both your newly collected Binance Fan Tokens and BNB will be transferred automatically to your spot wallet for trading.

Note: The screenshot above is not complete because there was no available projects.

How to Get Fan Tokens on Binance App
Step:1 Open your Binance App, and on the Homepage click on "More icon" and select "Earn" there you will see "Launchpad" click on it.

Step:2 Once you have enter the Binance Token Launch platform, select the Launchpool projects that you preferred.

Step:3 After you have select your preferred Launchpool and subscribe to it then click on "Stake Now".

Step:4 Click on Confirm purchase, as soon as the subscription period is over, your BNB all the newly Binance Fan Tokens that you have collected will be automatically transfer into your Spot Wallet for trading.

Note: In this Tutorial I didn't complete the process practically because as at the time the steps were carried out there was no available projects, all has already being completed/finished. However, you should know that once your subscription period is over, each participants token allocation will be calculated as shown below.

Source

Now let's head over to the Binance Launchpool since we have understand Launchpad.

What is Binance Launchpool?

In September 2020, which is roughly two years now, was the year Binance Launchpool was Introduced as a platform that allows users to earn new token rewards by staking either their BNB, BUSD, or any other tokens that is accepted on the platform. In a nutshell, Binance Launchpool is a platform that allows users to acquire new token rewards by staking their crypto tokens for free. If you are a trader or an investor that is looking for additional way that you can earn new crypto this is the strategy that you should follow.

How Staking in Binance Launchpool Works
Staking in Binance Launchpool works by using crypto assets to deliver funds into a liquidity pool. It is through this way that a new token is generated and given to users as a rewards. However, the process is called DeFi yield farming.

Secondly, the amount of tokens that is accumulated is varies on a daily basis according to the amount that is staked and the total number of tokens that is committed to the liquidity pool. This means that in the Launchpool, users token are calculated in every hour until the end of the period. Normally, users new tokens are earn base on a specified period of days which is normally 30days.

The new token that is earn is usually open for trading on the seventh day (7day) of farming. Once the token is open for trading, users will be allow to trade the new tokens that their have accumulated starting from the day of staking.

How to Access Binance Launchpool

Here I will be explaining how to access the Binance Launchpool using the Binance website before I will then show you a screenshot of how you can access it on your phone.

Step 1: Login to your Binance account and from there click the navigation buttoon you will see "Launchpad" click on it.

Step 2: Start scrolling down to see Launchpool" and the list of completed project and available projects.

Binance App

However, as at the time of carrying out my own practical, there was no available projects, all have been completed. Should in case you find available projects below is what you should do.

• Open the project an click on Stake Now to participate.

• The information and the estimated annual (APY) percentage yied, will be shown to you.

At the information that will be shown to you, you will see details like;
my Funds: It is your staked assets.
Available: This shows you the available balance that can be stake which is in your spot wallet.
Redeem: This alloes you to redeem your assets at anytime.
Staking History: This is where informations about your staking are shown.
My Rewards: Show you all unclaimed rewards and it's updated in every 1 hour.

Now that we have also known what is Binance Launchpool and how it works together with how it can be access it's time for we to know the difference between Binance Launchpad and Binance Launchpool.

Differences Between Binance Launchpad and Binance Launchpool

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Initially before the launch of Binance Launchpad came into an extend funding was through initial coin offering (ICO) where crypto funds are raise to support blockchain projects. However, users were losing their funds because of lack of protections and the high risk that was involved. As a matter of fact funds raising for crypto projects is no longer done that way it's now through Launchpad and Launchpool which is something that is confusing users to differnent their functions.

Binance Launchpad	Binance Launchpool
In a Launchpad there is a fair distribution of Initial Token Offering. This means that projects token are allocated basis of first come first serve.	In a Launchpool, listed DeFi token are distributed to a wide range of participant. It allows crypto investor to earn new tokens and generate good ROI.
In a Launchpad every listed project is subjected to pass through audit before it can be approved or confirmed.	The Launchpool is a platform for farming token,where users are allow to deposit their token into a liquidity funds and earn new ones for free.
Launchpad provides a platform that is secure for new crypto projects to fundraise fund without the involvement of third parties.	Just like the Launchpad, in the Launchpool promising crypto projects are supported in their earlier stage.

Conclusion:

If you have been following or monitoring majority of the IEOs on the Binance Launchpad you will noticed that almost of them have proven to be very lucrative, with token offering selling out within a minutes. A lot of Binance users both investors and traders are engaging themselves with Binance Launchpad and Launchpool. So it will not cost you any fees if you also participate in either the Binance Launchpad or Launchpool.

10% rewards goes to @steem.studios

Thank you for your time here. Please Stay Safe And Remain 🙏 Bless

For any questions please feel free to drop it at the comments section below👇.