Launchpads and their Problems

What is a Launchpad?

Launchpads were created to help public investors filter out fraudulent and flawed projects. By providing a platform that filters through the massive amount of new projects created daily, they give risk-free access to valuable opportunities while simultaneously pushing interesting ideas forward.

This kind of service was born out of necessity during the 2017 ICO boom, where many of these ICOs raised significant amounts of money but often scammed their clients in the process.

For the best ideas to be given the attention they deserve, there needs to be trust and reputation involved, and launchpads made this process easier.

It's been several years since launchpads first came onto the scene, and their biggest problems are now apparent. Users constantly face high entry fees in the form of launchpad utility tokens, and their allocations are often unfair and uneven. This makes it very difficult for new investors to get a high investment position or receive rewards from the projects they believe in.

Spectre's ultimate goal is to address these issues by creating a fairer, more rewarding environment for all smart investors. We believe this will lead to better decision-making and more successful investments.

Issues with Launchpads

Launchpads require big upfront capital commitments to get access

Large amounts of staked tokens with lockdown periods are required to receive good allocations. It not only prices out most investors, but also creates an unfair distribution, benefitting wealthier staked users.

Launchpads offer the opportunity to claim tokens at the IDOs price

This is also known as public price which means you pay a huge premium over the private sale price (on average you pay 300% more, but it can be in excess up to 1,500% in some cases.

Launchpads are about quantity, not quality

They have no skin in the game and simply cater to the hunger for IDOs

Launchpads do not see a community as vital

To launchpads, what matters the most is how much money you're willing to invest in the project.

Launchpads do not offer a lot of information around the IDOs they arrange

It is not easy to know why a launchpad chooses a particular project and whether or not it is a good investment. That is why it can lead to uncertainty and inconsistency.

  • Are there monetary incentives for the launchpad to arrange the IDO?

  • What makes it an attractive opportunity for you?

  • How do you know that the team behind that particular project is legitimate?

Answering these questions strictly from the confines of the launchpad is near impossible since:

  • You can’t talk to the founders

  • You can’t test the game/tech

  • You can’t properly evaluate the risk-reward ratio

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