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🚀 Crypto Launchpads & IDOs

Last verified: July 2026

A launchpad is where a new crypto project sells its token to the public for the first time. It's an exciting way to get in early — and one of the riskiest corners of crypto. Here's how it actually works.

The idea in one line

A launchpad is a platform that helps a new crypto project sell its token to the public for the first time, before that token is listed on any major exchange. Getting into a promising launch early has historically produced some of crypto's biggest returns — and also some of its biggest losses, since a brand-new project is inherently unproven.

How a launchpad sale actually works

A project applies to a launchpad, which typically does some due diligence — checking the team, the code, the token's economic design — before agreeing to host the sale. The launchpad then runs the actual token sale to its own user base, often using a fairness mechanism like a lottery, a tiered system based on how much of the launchpad's own token you hold, or a "first come, first served" queue, specifically to prevent bots and large buyers from grabbing the entire allocation before ordinary users get a chance.

ICOs, IEOs, and IDOs — the evolution of the token sale

The oldest model, the ICO (Initial Coin Offering), popular around 2017, let a project sell tokens directly with minimal vetting — which led to enormous amounts of fraud and worthless projects. The IEO (Initial Exchange Offering) moved the sale onto a centralised exchange's own platform, adding a layer of vetting since the exchange's reputation was now on the line. The IDO (Initial DEX Offering) — the dominant model today — runs the sale through decentralised infrastructure instead, often using a smart contract and a decentralised launchpad, combining broader accessibility with on-chain transparency about how the sale itself was conducted.

Why the risk is genuinely higher here

Buying into a launch means buying something with essentially no track record — no meaningful price history, no proof the team will deliver on its roadmap, and often a product that isn't even fully built yet. Even launchpads with real vetting processes have hosted projects that later failed or turned out to be scams; vetting reduces risk, it doesn't eliminate it. A large share of new token launches lose most of their value within months, even when the launch itself sells out completely — hype at launch says very little about long-term viability.

What to actually check before participating

Beyond the launchpad's own reputation, look at exactly how much of the total token supply is being sold in this round (a tiny public sale alongside enormous team/investor allocations is a red flag), whether the team's and early investors' tokens are locked up for a meaningful period (an immediate ability to sell suggests less long-term alignment), and whether there's an actual working product or just a promise. None of this guarantees success, but skipping this check entirely is how most bad launches catch people off guard.

The India angle

Participating in a token launch and later selling (or even receiving) the resulting tokens is a taxable crypto event under India's standard rules — the usual 30% tax and 1% TDS apply once the token is tradeable. Given how often launch-stage projects turn out to be worth little or nothing, remember that losses here generally cannot be offset against other crypto gains under current Indian tax rules — a genuinely important thing to factor into how much you risk on any single launch.