Am I losing money as soon as I rush in? A review of the wealth creation effect of exchange LaunchPads

Author: Luojia Micro

LaunchPad has always been a symbol of wealth effect in the crypto space. Although the crypto market has been in a downward trend this year, with several projects launching at a loss, many LaunchPad projects launched by top exchanges have still performed well. This article will comprehensively compare the return rates, new project launch speeds, gameplay modes, and other dimensions of LaunchPad projects across major exchanges to reveal which top exchange's LaunchPad has a greater wealth effect.

1. Project Return Rate Comparison

According to data from Coingecko and CryptoRank, LaunchPad projects from top exchanges have had good performance since 2023, with average maximum return rates exceeding 10 times. Currently, Bitget stands out with the highest performance. The average historical maximum return rate of all its LaunchPad projects is 39 times, ranking first; followed closely by Bybit and Binance, with average historical maximum return rates of 32.3 times and 29 times, respectively. In terms of the highest return rate for a single project, Bitget's TYPE, launched in July, achieved a maximum increase of 68 times, making it the highest return rate for any LaunchPad project launched in 2023.

|-------------|----------------------------|--------------------------------| | Exchange | Single Project Maximum Return Rate | All Projects Average Historical Maximum Return Rate | | Binance | 33 times | 29 times | | OKX | 16 times | 16 times | | Bitget | 68 times | 39.3 times | | Bybit | 16 times | 32.3 times | | KuCoin | 8 times | 16 times |

（2023 Top Exchange LaunchPad Project Performance）

Additionally, the price performance of platform tokens also indirectly determines the return rates of LaunchPad projects. This is because participating in LaunchPads of various exchanges requires holding their platform tokens. If the price of the platform token fluctuates significantly or even crashes, it will lead to the returns from the LaunchPad project being unable to compensate for the losses from the decline in the platform token.

So far this year, the overall performance of platform tokens has been mediocre. Although most platform tokens have seen price increases compared to the beginning of the year, they have not matched Bitcoin's increase in 2023 (BTC has risen 107% since the beginning of the year). Therefore, when calculated in Bitcoin terms, the performance of the vast majority of platform tokens is subpar.

|-------------|---------------------|------------|-----------------| | Platform Token | Price on January 1, 2023 | Current Price | Change | | BNB | $246.33 | $227.55 | -7.62% | | OKB | $26 | $45.22 | 73.92% | | BGB | $0.181 | $0.486 | 168.51% | | MNT (formerly BIT) | $0.3406 | $0.378 | 10.98% | | KCS | $6.5 | $4.63 | -28.77% |

（2023 Top Exchange Platform Token Performance）

Bitget's BGB is the only platform token that has increased more than BTC's increase, currently rising 168% since the beginning of the year, making it the best-performing platform token in 2023. Therefore, many users participating in Bitget's LaunchPad are benefiting from both the high returns of the LaunchPad projects and the appreciation of BGB.

2. Project Launch Speed Comparison

Moreover, the number of new projects launched also reflects the wealth generation capability of a LaunchPad. Since the beginning of 2023, Bitget has been more proactive in terms of the number of new tokens launched. As of now, Bitget's LaunchPad has launched 5 projects. On October 26, Bitget announced the launch of a new round of LaunchPad------T2T2, a project with more features and stronger usability similar to Friend.tech. Binance has launched 3 LaunchPads this year, ranking second. In contrast, OKX and Bybit have been more conservative in launching new projects, with both only launching one new project this year.

|---------|--------------------| | Exchange | Number of LaunchPads Launched in 2023 | | Binance | 3 | | OKX | 1 | | Bitget | 5 | | Bybit | 1 | | KuCoin | 2 |

（2023 Top Exchange LaunchPad Project Count）

In addition to launching more LaunchPad projects, Bitget has also introduced several popular tokens in the industry, such as BLUR. Recently, Binance's IEO project Arkham distributed airdrops to users, while Bitget opened trading one hour earlier than Binance, allowing for market pricing ahead of time. Furthermore, Bitget has set up special zones for popular narrative tokens, such as AI, MeMe, and BRC 20. This demonstrates that Bitget has a superior ability to discover quality projects and seize market trends.

3. Gameplay Mode Comparison

The gameplay of LaunchPad was first introduced to the crypto industry by Binance. After years of development, its gameplay has become relatively fixed. Typically, users hold platform tokens to qualify for participation in a lottery, and after winning, they can exchange for new project tokens. Currently, mainstream trading platforms adopt this model, but its appeal to users is decreasing. Recently, Bitget launched a new round of LaunchPad that introduced a new group-buying model, bringing traditional internet group-buying gameplay into the Web3 industry. With a low entry threshold (starting from 50 BGB) and social attributes, this LaunchPad may spark a new wave. In terms of participation, this project has seen over 4,000 teams participating within less than a week, with participation numbers exceeding ten thousand.

Conclusion

From the above analysis, it can be seen that Binance still holds significant influence in LaunchPad, maintaining a high speed of new launches and investment return rates. However, platforms like Bitget are catching up and even showing trends of surpassing, with not only higher investment return rates and launch speeds but also more diversified gameplay. We look forward to the new round of Bitget's LaunchPad------T2T2 bringing us even greater surprises.