How To Use Phemex Launchpad: Little-known Facts You Should Be Aware In 2023

Phemex introduces Launchpad, a service where our users can purchase select cryptos at a set price before their launch on the Spot Market. This article will show you a step-by-step guide on how to use Phemex Launchpad.

What is the Launchpad?

A decentralized exchange-based (DEX) platform for launching new currencies, tokens, and blockchain or crypto initiatives is known as a crypto launchpad. It differs from other fundraising platforms in that it allows investors to invest in early crypto ventures before publicly publishing.

This is a great value proposition for investors since it allows them to buy tokens at a lower cost and optimize their return on investment when the price rises and they sell them later.

Launchpad Advantages

Launchpads provide various benefits to both projects and investors. These benefits include:

1. Beginner-friendly: IDOs are completely permissionless and require little to no fee for token listings on DEXs. Any team can put their project on a crypto launchpad as long as they pass the entry requirements.
2. Safer: Launchpads are not vulnerable to security breaches as they do not hold user funds. Instead, investors are in full custody of their assets. Launchpads can access the tokens through secure wallets only after wallet linking.
3. Receive tokens almost instantaneously: The tokens of interest are almost immediately available for trading and do not require a waiting period.

How Do Crypto Launchpads Work?

A token sale on a launchpad employs a blockchain-based technique to encourage regular investors to invest in early-stage crypto ventures by ensuring a more equitable distribution of tokens. This is because blockchain allows for increased transparency by closely tracking token allocation. Previously, only venture capitalists (VCs) and other institutional investors had access to this type of opportunity.

With crypto launchpads, even average retail investors can invest in a potential project at a modest cost before it goes public and values skyrocket. This more equitable token distribution also safeguards crypto projects from rapid price drops caused by pump-and-dump scams, which whales are notorious for.

How to participate in Phemex Launchpad？

Confirm account balance (Calculation Period)

During the Calculation Period, they will total your account balance and calculate the daily average USDT balance in your spot account, contract account, and investment account every day during this period.

• Within your investment account, USDT staked in Fixed/Flexible Staking and Launchpool will be automatically counted.
• For your contract account, the wallet balance will be counted and may be affected by your realized P&L. Trading bonuses within your contract account will not be counted.

Over the Calculation Period, your average daily balance of USDT will be rounded up to the nearest integer and must be equal to or greater than a certain minimum amount.

Subscription Period

You can freely subscribe by committing USDT within the subscription limit, and your subscription amount will be locked in Launchpad until the final, total subscription amounts are determined.

Allocation Period

Each user’s token allocation will be calculated at the end of the subscription period. The allocation is determined based on the amount of USDT committed by each user during the subscription period, though it’s limited by the specific project’s Max Individual Allocation.

Token Distribution Period

After confirming your token allocation and deducting your subscription fee in USDT, we will return any remaining USDT to you. Both your USDT and Launchpad tokens will be automatically transferred to your spot wallet.

How To Use the Phemex Launchpad

Here is a step-by-step guide on how to use Launchpad:

1. Register or sign in to your Phemex account.

2. Hover over the “Spot” tab on the Homepage and click on the third button, “Launchpad.”

3. You will be taken to the Crypto Launchpad homepage. There will be several tokens listed under Launchpad Tokens for you to view. To learn more about each token, click on “Coin Details.”

4. You will now view the details about your selected token. Click on the four buttons to learn more about the selected token, such as its website, rules, tutorials, and frequently asked questions (FAQ).

Scroll down to view the Timeline for the selected token. There are four periods; the first is the Calculation Period. During this period, your USDT in your Spot Wallet and Investment account will be calculated on a daily basis up until the final daily average is formed. Your everyday average will be calculated and updated daily at 5:00 UTC.

In order to increase your daily average, you need to deposit more USDT. You can also learn more about how to make a deposit on Phemex. 

Note: This service is only for users who have been KYC verified. If you haven’t yet verified your identity, you’ll be directed to “Go to KYC” and verify your identity.

6. The second section is the Subscription Period. You can only subscribe using USDT from your spot wallet. Therefore, if your spot wallet currently contains less USDT than the minimum amount required for the subscription commitment, you must transfer more USDT from other accounts into your spot wallet.

7. In the Subscription Period section, enter the amount of USDT you want to commit. Once you have entered the amount, click “Commit.” After the first investment, the Reclaim button will be clickable. This is because you have one chance to reclaim your USDT for any personal reasons. The USDT will be returned to you once you click it.

8. During the allocation period, our system will calculate your total token allocation. Please be patient as the processing times may vary.

9. Lastly is the Distribution period. This happens after the allocation calculations are complete. Phemex will deduct the corresponding USDT from your account based on the final allocation, which will be transferred to your spot wallet with any remaining USDT, if applicable.

Conclusion

Crypto launchpads have emerged as a popular crowdfunding mechanism in the cryptocurrency sector, benefiting new businesses and investors. On the one hand, launchpads provide new projects with the funding and exposure they require. At the same time, they provide investors with access to a number of potential cryptocurrency projects and early-stage token sales. Furthermore, the vetting procedure connected with leading launchpads protects investors from potential cryptocurrency frauds and scams.

A crypto launchpad is a fundraising platform that allows investors to invest in early crypto projects before they are publicly listed. This allows users to purchase tokens at a lower cost to maximize their return on investment when the market rises and they sell them later.

For crypto projects, obtaining funding through a launchpad allows them to reach a larger audience of investors. This prevents many of their tokens from being purchased by whales and used in pump-and-dump operations, causing their token prices to plummet.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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