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With all the difficulties of today’s market how is it possible to launch a successful DeFi startup? Is it necessary to go for launchpads?

Since the beginning of 2020, decentralization have witnessed a growth like never before. The market grew to almost 55.5 billion USD. And here we do ask, how did all these projects come up?

The first thing we need to know is that to launch a project, you need an idea. A creative idea that will attract the audience and make a change in the market. But is that enough? Surely not. This idea needs to be financed in one way or another, and here lies the first obstacle.

Are huge investors willing to finance startups? I believe after the impact of the global pandemic on the world economy, investors became more risk-averse. Most investors are now looking for safer investments. This is why most startups nowadays are moving into another strategy which is crowdfunding. The crowdfunding concept is where a large number of people pool together small individual investments in order to lift a company or a project off the ground. Unfortunately, almost 90% of these projects fail to achieve their funding goals.

This is why projects do need launchpads. These platforms provide the necessary financing opportunities for DeFi projects. Not only they are an ultimate liquidity provider, but also they usually have direct connections with expert financial advisors, which means they are able to add helpful experience to the upcoming projects.

What is the launchpad’s reward? Launchpads will usually would keep earning a percentage of dividends from startups once projects get to accelerate. This is another reason to trust startups, they want your project to succeed, just as much as you do. However, some of the top launchpad might ask for high dividend percentages in return, projects can go to new and reputable launchpads, similar to GenesisPool.

It is really important to know that the market is a competitive place, and a project has to be ready for all kind of obstacles, there is no room for mistakes once you join this race.

What do you think?

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