How are you all? I hope you are all doing well. Today I will talk about Launchpool vs Launchpad, what is it and how does it work? So let's start without delay, first I will talk about Launchpool,

Launchpool

Currently, various exchanges have a Launchpool system, when a coin is first launched in the market, they launch this Launchpool event,
Here, general investors have to lock a specific coin, but if you want to participate in the Launchpool event on Binance, then the first condition is that you have to lock BNB, FDUSD coins for a specific time, then the amount you are locking BNB, FDUSD, if the amount is less, then new coin mining will be done in a smaller range, and if you lock a larger amount, then new coin mining will be done in a larger amount,
And that event lasts for a specific time. Currently, most of the Launchpool events on Binance last for three days, one advantage of Launchpool is that you can immediately collect the mining that has been done every hour, and it will be added to the wallet immediately, when trading starts, you can sell it immediately,
One advantage of Launchpool is that here There is no risk, usually if you join the launch pool through a stable coin then the risk is 0%,
But the problem is that since there is no risk here, the amount of rewards is low, the more users there are, the less rewards they give,

Image collect Pixabay

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Launchpad

Now let's talk about how Launchpad works, Launchpad is not seen on most exchanges,
When a new coin comes to the market, before that they bring Launchpad events to those exchanges, if you want to participate in the Launchpad event then you have to stake their specific coin or stable coin for a certain amount of time, at some point they will select the winners through a lottery then those winners will be able to buy that new coin from them at a low price like a pre-sale,
But there will be rules there that the maximum amount of coins can be purchased,
When they launch their new coin in the market then they can sell it and take profit, now there are some risks like if you buy a coin you get the price you bought it at No, then you will face huge losses, so you should choose a trusted project here,

Another risk is that most Launchpad events have a Vesting system, meaning you cannot sell all the coins you have purchased from Launchpad at once. They will give you 25% to sell, you can sell the rest later and this is a very bad thing because the remaining coins, the price of the coins decreases with time, so you have to face losses,

Image collect Pixabay

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I hope you have learned about the difference between Launchpool and Launchpad and how they work, the advantages and disadvantages, so I am ending here today. May everyone be well, Allah-Hafez