Three Tips for Finding a Token Launch Worth Joining

There’s a lotta tokens out there with more arriving on the market every week. Despite this plentiful supply, demand for securing an allocation to the hottest new projects remains high. And no wonder: pick the right one and you can make serious money, not to mention participating in all the things that token ownership grants you, be it access to the latest DeFi platform or the ability to operate your own AI agents.

But with so many new token projects out there – and token launchpads to choose from – identifying the most promising public sales is anything but simple. It’s a task that calls for diligence, meticulous research, and the ability to juggle a host of variables, from the tokenomics of the project in question to the entry criteria enforced by the IDO platform hosting it. If you’re serious about making money, here are three tricks for identifying token launches that have an outsized chance of success.

1. Choose a Curated IDO Launchpad

All launchpads claim to carefully curate the projects they agree to list, but it’s fair to say that some do a better job of this than others. The leading launchpads don’t struggle for dealflow and so can afford to be more selective about the ones they partner with. Smaller IDO platforms, or those focused on smaller ecosystems, such as a single L2 or a niche onchain vertical, don’t have that luxury.

It doesn’t automatically follow that you should gravitate towards the most popular IDO launchpads just because they get their pick of the best token sales. Your decision should also be informed by an analysis of how recent projects have performed on these platforms. Moreover, project vetting isn’t merely the responsibility of the launchpad – it’s yours too. In other words, once you’ve found a launchpad you like, conduct your own research into the projects it features to determine which ones seem likeliest to perform well – and which carry too much risk.

2. Pick a Platform That Offers Refunds

As you know, launchpads can’t guarantee that every project they feature will succeed. Even with the best curation and marketing, some projects prove to be a flop. This means there’s a risk that even when you secure access to a token sale you’re interested in, there’s the potential to lose money almost immediately due to the token trading on the secondary market for less than it was sold at via the IDO.

Some of the more enterprising IDO platforms have addressed this by offering a refund policy which provides a grace period in which to claim your tokens or request your initial money back. While this doesn’t guarantee that you’ll walk away unscathed, it offers a degree of protection and allows you to study the token’s post-IDO performance before deciding whether to claim. As for what happens to the funds you’ve committed to the sale, if you request a refund they should be returned to you in a timely manner. Pick an IDO platform that pledges this and swerve any that use excuses to hold your funds for any longer.

3. Avoid Subscription Model Launchpads If Possible

The vast majority of launchpads rely on some kind of subscription model that is effectively pay to play. If you want to maximize your chances of securing an allocation on these IDO platforms, you need to pay for the privilege, usually by acquiring and staking the native token for a period of time – generally 30 days or more. Of course, you can sell these tokens once they’ve been unstaked, but since everyone else will be doing the same, there’s a good chance you’ll receive less than you paid for the tokens.

Since the subscription model is virtually ubiquitous, you’ll struggle to avoid this risk altogether – though there is at least one platform out there that doesn’t utilize this system, which we’ll reveal shortly. If you’re unable to avoid having to pay for some sort of subscription or native token to participate, at the very least study the launchpad token before FOMO’ing in just because there’s a hot sale you want access to. Broadly speaking, the more popular the launchpad, both in terms of users and IDOs, the lower the token volatility is likely to be. Especially if the token has greater utility than simply providing IDO access.

So What’s the Verdict?

In terms of the first tip we covered – quality of curation – there are a few launchpads that stand out. Chief among them is DAO Maker, Poolz Finance, Polkastarter, and Coin Terminal. This is by no means an exhaustive list, but empirically all of these launchpads have a knack for identifying solid projects that have a chance of making the grade. No launchpad can pick constant winners, but these IDO platforms outperform when it comes to quality control.

When it comes to refund-protected launchpads – those that will let you keep your original funds rather than claiming the tokens if the project goes south – there are two candidates that stand out here. Coin Terminal offers a refund policy that allows users to stick or twist with their purchased tokens, and has recently announced a $15,000 lottery for all refundable sales. 

Finally, we get to the third point on our list: launchpads that don’t enforce a subscription model, which is usually administered via a native token that must be purchased. This is the shortest of shortlists, for it numbers just one: Coin Terminal is the only IDO platform to eschew the “pay to play” model, making it the overall winner across all three benchmarks. That’s not to say it’s the only launchpad worth considering or that every decent token sale will flow through it. But the ones that do are likely to be good quality, optionally refundable, and don’t require a token to enter. It’s the closest thing you’ll find to crypto’s holy grail of a fair launch.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.