Launchpads are the key to decoding crypto investment

12/14/2024 19:01
Launchpads are the key to decoding crypto investment

It's understandable why investors may be cautious about investing in unknown crypto projects. However, launchpads are the solution.

Launchpads are the key to decoding crypto’s investment complexity | Opinion

Disclosure: The views and opinions expressed here belong solely to the author and do not represent the views and opinions of crypto.news’ editorial.

When investors decide which stocks or ventures to invest in, they usually have a set of criteria to evaluate which options best align with their financial goals. One main factor to consider is risk appetite, which refers to investor willingness to take on risk in pursuit of potential returns.

Those with a lower risk appetite prefer more stable blue-chip stocks with steady but modest returns. On the other hand, investors with a higher risk tolerance may seek out more volatile stocks or emerging markets, enticed by the possibility of substantial returns. They are often willing to endure market fluctuations, believing the potential long-term rewards outweigh the risks.

However, when it comes to crypto, retail investors have remained conservative. Despite the industry’s notorious promises of high returns, many retail investors cautiously approach crypto. Their hesitation is due to crypto’s well-known volatility, the perception that frauds and scams are prevalent, and a general lack of technological understanding compounded by a complex user experience.

With 2025 on the horizon and Bitcoin (BTC) soaring amid bullish vibes, crypto has steadily gained traction as a legitimate investment class. While recent price jumps stem from Donald Trump’s election victory and his crypto-friendly appointees, the industry has been gaining traction for some time. 

The industry has found a new product-market fit for stablecoins, DeFi is booming, and newly improved infrastructure has enabled a variety of new applications while also reducing transaction costs. As such, many retail and institutional investors are becoming enamoured with crypto’s investment potential and growing technological capabilities. 

This begs the question: How can blockchain-based projects effectively convert conservative retail and institutional investors into active participants beyond their comfort zone?

Crypto launchpads grant investors early access to tokens before they list on public exchanges. In practice, this offers investors enticing investment opportunities as they have the potential for higher ROIs.

Cryptocurrency uncertainty can be unsettling for those who prefer investing in safe stocks with steady growth. Launchpads address these concerns by helping make crypto approachable, challenging the perception that it is unsafe, and emphasizing transparency to foster trust among hesitant new investors.

The concept wasn’t always perfect. For one, ICOs became notorious during the 2017 bull run due to scammy token launches and straight-up fraud. However, the next generation of crypto launchpads incorporates stronger vetting practices to bolster safety and informed investment. This allows investors to engage with early-stage projects with a sense of security they might not get when exploring projects independently.

Investors gain here in two ways. They get to actively engage with projects with some level of protection and gain bragging rights to say they helped launch an innovation in a growing field. As crypto expands and matures, so do the launchpads that propel many of the industry’s most promising projects, even putting community-focused spins on the “auction house” vibe launchpads sometimes inhabit.

For instance, Gems’s launchpad emphasizes community and networking as it seeks to establish an exclusive ecosystem for crypto investing and fundraising. At the heart of Gems’s platform is a diverse network of “Leaders,” eager and discerning investor influencers who then rally their community around projects on the launchpad based on their interests and speciality.

Compared to other launchpads, Gems recognizes the unpredictability of crypto investments and offers an optional protection program through a trusted insurance provider. To make sure the projects utilizing their launchpad are the cream of the crop, Gems’s investment committee also conducts a thorough vetting process to pinpoint teams with the most disruptive potential. 

It’s understandable why investors may be cautious about investing in unknown crypto projects. However, launchpads are an irreplaceable asset for an industry that is in the midst of expansion by helping demystify early-stage investing and broadening access to everyone.

Read more --->