# Lesson #6: Launchpads

By [Ankhrypto](https://paragraph.com/@ankhrypto) · 2022-04-30

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> _How do crypto projects get the money to build and pay developers?_

With this flurry of new projects and ideas appearing in crypto, a new problem arose: these projects, not necessarily big or connected enough to be VC-backed, needed a way to raise funds for their operations and development, as well as to provide inital liquidity for their token on AMMs. At first, **Initial Coin Offerings** (**ICO**) were used, resembling classic fundraising events but more retail-oriented and with tokens as a reward for investors instead of shares. However, seeing as **Initial Coin Offerings** (**ICO**) were centralized and increasingly regulated, new models appeared, often operated by launchpads as decentralized (therefore considered trust-less) intermediaries.

These launchpads would allow project teams to sell part of the supply of their tokens before release, and raise funds through this sale. This is usually referred to as an **Initial Decentralized Offering** (**IDO**).

These often include one or more of the following mechanics:

*   Selling only to people who hold/stake/provide liquidity for the launchpad’s token
    
*   Dutch auction → Price that gets lower with each buy, same price for all at the end
    
*   Buying with launchpad’s token or liquidity → **Initial Farm Offering** (**IFO**)
    
*   Instant locking of some or all raised funds as liquidity (to “prevent rug-pulls”)
    
*   Seeding liquidity with a **Liquidity Bootstrapping Pool** (**LBP**), setting the initial price and gradually adapting to the pool
    

Major projects will often opt for major launchpads and even sometimes multiple launchpads to reach a bigger audience and benefit from a bigger fundraising capacity, but of course any project at this early stage can just as much be a hidden gem as it can be a “rug pull” or scam.

Examples:
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*   [**Polkastarter**](https://www.polkastarter.com/): Multi-chain launchpad originally focused on Polkadot projects
    
*   [**The DAO Maker**](https://daomaker.com/): Ethereum launchpad
    
*   [**Ignition Launchpad**](https://ignition.paidnetwork.com/): Ethereum Launchpad
    
*   [**PancakeSwap**](https://pancakeswap.finance/ifo): AMM with an IFO section for fund raises, main fundraising platform on BSC
    
*   [**Avalaunch**](https://launchpad.avalaunch.app/): Avalanche C-Chain launchpad
    
*   [**Fjord Foundry**](https://fjordfoundry.com/): Multi-chain LBP platform for [_Balancer_](https://balancer.fi/)
    

_Version française disponible sur_ [**_Muchcoin_**](https://www.muchco.in/academy/launchpads)

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*Originally published on [Ankhrypto](https://paragraph.com/@ankhrypto/lesson-6-launchpads)*