A crypto launchpad is a platform that runs token sales for new projects: it vets projects, decides who may participate and how much, collects contributions, and distributes tokens on a vesting schedule. Building one is a modest smart-contract project. Running one responsibly is much harder, because you are effectively helping projects sell investments to the public.
The launchpad models
- IDO (initial DEX offering). Sales run by smart contracts, with tokens listed on a decentralized exchange afterward. The pages for Ethereum, BNB Smart Chain, Polkadot, Cardano and multichain cover chain specifics.
- IEO (initial exchange offering). A centralized exchange hosts the sale for its verified users and lists the token; see the IEO guide.
- IGO (initial game offering). Sales of game tokens or in-game NFTs before a game launches.
- NFT launchpads. Mint platforms for collections, a different product with different mechanics.
Sale formats
| Format | How allocation works | Trade-off |
|---|---|---|
| Fixed price, first come first served | Whoever transacts first gets filled | Gas wars and bots win |
| Tiered guaranteed allocation | Allocation by staked platform tokens | Rewards loyal holders; concentrates access with whales |
| Lottery | Random winners among registrants | Fairer for small users; needs verifiable randomness and sybil resistance |
| Overflow / pro-rata | Everyone commits; allocation scaled down, excess refunded | No race; requires refund logic |
| Dutch auction | Price falls until demand meets supply | Market price discovery; harder for users to understand |
| Liquidity bootstrapping pool | Weighted AMM pool whose weights shift over time | Discourages bots; price can fall sharply |
Core components
- Staking and tier contracts. Lock the platform token to qualify for tiers, with snapshot rules so people cannot stake at the last minute and leave.
- Registration and allow-listing. Off-chain registration produces an allow-list, usually committed on-chain as a Merkle root so the contract can verify eligibility cheaply.
- Sale contract. Accepts stablecoins or native coins within caps, enforces timing, and handles refunds for overflow sales.
- Vesting and claim contract. Releases purchased tokens on a schedule, often with a portion at listing and the rest over months.
- Liquidity and lock. Part of the raise paired with tokens on a DEX, with LP tokens locked for a stated period.
- KYC and geo-restriction. Identity checks and exclusion of restricted jurisdictions, connected to wallet addresses.
- Admin dashboard. Project onboarding, sale configuration, monitoring and reporting.
Project vetting is the real product
Launchpads live or die on the quality of what they list. Many sales of the 2021 cycle traded far below their sale price within months, and some were outright rug pulls. A responsible vetting process checks the team's identity, the token's legal analysis, the smart contracts (an independent audit at minimum), token distribution and unlock schedules, and whether there is a working product. Publish your criteria, and walk away from projects that will not meet them.
Failure modes
- Sybil attacks. One person creating many wallets to win lotteries. Mitigate with KYC-bound allocations and staking requirements.
- Bots and sniping at listing. Bots buy the first DEX block and dump on users. Consider anti-snipe windows or LBPs.
- Sell pressure from unlocks. Generous early unlocks for insiders crash prices. Insist on reasonable vesting.
- Contract bugs. Claim and vesting contracts hold large balances; they need audits as serious as any DeFi protocol.
- Legal exposure. Hosting sales of what regulators view as unregistered securities can make the launchpad liable too.
Cost and timeline drivers
As a reasoned estimate, a single-chain launchpad with staking tiers, an overflow sale, vesting and a web app is roughly two to four months of work for a small team of two or three engineers and a designer, plus an audit. Drivers: number of chains, sale formats, non-EVM chains, KYC integration, and whether you also issue a platform token, which brings its own legal questions. NFT mint launchpads are a separate product with different contracts.
Frequently asked questions
Do I need my own token to run a launchpad?
No. Staking tiers are common but optional; allocation can use lotteries, KYC-based caps or reputation instead, which also avoids the legal questions around a platform token.
Can a launchpad avoid securities law by being decentralized?
Not reliably. Regulators look at the economic reality of the sale and who promotes it. Decentralized execution does not change what is being sold.
How do launchpads make money?
Typically a fee on funds raised, a token allocation from the project, and sometimes listing or marketing fees. Disclose any allocation you receive.