Hello, community! We all love free stuff, right? That’s why we’re constantly on the lookout for new opportunities to earn tokens — because simply buying them on an exchange feels a bit too “luxury.”
Today, we’ll explain what a Launchpool is, how it works, and how much you can actually earn from it. But before we start, a quick reminder: we’ve already covered everything about Airdrops. Highly recommended reading!
What Is a Launchpool?
Launchpool platforms allow users to support new crypto projects through investments and receive rewards for doing so. Important note — your funds aren’t taken away. But let’s go step by step.
There are several platforms with Launchpools. The most famous example is Binance, the world’s largest crypto exchange. Here’s how it works there:
- Find the Launchpool section on the platform — Binance Launchpad.
- Users are offered to stake BNB (Binance’s native token) or other coins such as FDUSD or USDC. The process is quite similar to staking.
- Wait for the token drop of the project currently featured in the Launchpool.
Keep in mind that rewards aren’t distributed instantly — tokens are usually credited right before listing.
How Much Can You Earn?
Now to the main question — how much can you actually make? On Binance, the logic is simple: the more tokens you stake, the bigger your profit.
Each Launchpool has a total reward pool, which is distributed proportionally among all participants based on their contribution.
For example, if a project distributes 3,000,000 GEEK tokens, the total staked amount is 100,000 BNB, and you’ve staked 10 BNB, your share will be 300 GEEK tokens. Here’s the formula:
Your stake / Total staked amount × Total reward tokens
Your exact profit depends on the token’s market value after listing. For example, if GEEK hits $0.30 per token, you instantly earn $90 at listing — not bad at all!
The best part — you don’t lose your original funds. Tokens staked in the Launchpool are returned to you in full. The only real risk is price fluctuation of your staked coins. But if you’re holding long-term anyway, that risk is minimal.
Launchpool vs Launchpad — What’s the Difference?
Many confuse Launchpool with Launchpad — understandable, given how similar the names sound. But the mechanics are completely different.
Launchpool is essentially token farming without buying anything. You stake your existing assets for a set period and receive new tokens as a reward — calculated by the formula above.
Launchpad, on the other hand, involves purchasing new tokens before their listing — a sort of presale where the exchange sets the starting price. What happens after listing is anyone’s guess.
In short, Launchpool is a safer, almost risk-free way to farm new tokens, while Launchpad is a riskier approach involving direct investment.
Other Launchpools Besides Binance
If you prefer not to use Binance, good news — many other exchanges also offer Launchpools:
- OKX — works similarly to Binance. Investors can stake the OKB token or USDT to earn rewards.
- Bybit and Bitget — same mechanics.
- Less mainstream options like Gate.io also exist — some even distribute tokens completely free.
So finding an alternative to Binance isn’t hard. Plus, new platforms keep emerging all the time.
However, be extremely cautious when trying new ones — make sure your funds are safely returned after listing. That’s why mainstream exchanges are usually the most secure choice for investments.
Conclusion
The beauty of Launchpool is that it allows you to earn new tokens without buying them. That means no losses due to market volatility — a perfect way to generate extra income while holding your crypto long-term.
It works especially well on Binance, where you can stake BNB to receive new tokens. Remember those BNBs once given away through airdrops? One coin now costs over $1,200!
If you feel a little FOMO reading that, make sure to follow our CryptoGeek Telegram channel — we regularly post the hottest airdrops there. Who knows, maybe one of those tokens will be worth thousands one day!
With deep respect, your Geek!
What Is Launchpool and How to Earn — FAQs
Launchpool platforms let you support new projects through investments and receive token rewards. Your staked funds remain yours throughout the process.
The more coins you stake in a Launchpool, the greater your profit — since rewards are distributed proportionally to your share of the total pool.