Binance hasn’t hibernated in 2018’s crypto winter. To start of 2019 with a bang, the world-renowned crypto startup, lauded as one of this industry’s leading participants, launched its “Launchpad” venture that could single-handily revive initial coin offerings (ICOs).
What’s Binance Launchpad?
On Thursday, Binance, headed by crypto entrepreneur Changpeng Zhao, relaunched Launchpad, a platform that facilitates token sales.
— Binance (@binance) January 3, 2019
Starting January, Launchpad will run one ICO every month, allowing vetted crypto and blockchain startups to raise funds, as Binance will push the sale to its vast user base of over 10 million. Through a blog post on the matter, the startup claimed that Launchpad’s offerings are a net benefit for aspiring projects and consumers alike, noting:
“With this platform, we grant our users the chance to be part of potentially game-changing projects.”
Interestingly, Binance explained that Launchpad isn’t just a token offering service, as employees at this incubator-esque arm will reportedly advise projects, which will be beneficiaries of Binance’s industry expertise and connections. The firm added that by offering its support to up-and-coming ventures, their products can be bolstered, while the adoption of cryptocurrencies and related technologies will hopefully skyrocket.
Explaining the importance of this pro-innovation platform, the world-renowned exchange noted that there are countless “worthwhile ideas and projects” that need to be discovered and nurtured. And considering the hegemony that Binance has established for itself, it (almost) makes sense to spread the wealth, as it were, to produce healthy competition and to promote originality. The firm wrote on the matter:
“At Binance, we believe in the long-term potential of blockchain technology and recognize our duty of moving the whole ecosystem forward, encouraging the next impactful projects wherever they may emerge. Launchpad is a significant part of our holistic support when it comes to supporting blockchain startups.”
And interestingly, as aforementioned, this is the second iteration of Launchpad. Even Binance’s first foray into mediating token sales, which came at the peak of the 2017 Bitcoin boom, saw notable levels of success.
BREAD, a fintech startup that offers an easy-to-use cryptocurrency wallet, sold $6 million worth of BRD tokens within 216 seconds. Just days later, GIFTO (GTO), a token that pertains to the Uplive streaming application, saw $3.4 million fly its way in 98 seconds — that’s fast!
Tron-Backed BitTorrent And Fetch.AI — The First Crypto Startups On Board
Launchpad — an exciting venture in and of itself — has already garnered support from some interesting crypto startups.
BitTorrent, the peer-to-peer filing sharing blockchain project that has been backed by Tron (TRX), will be the first firm to ICO on the platform. BitTorrent will reportedly be offering its “BTT” token, which incentivizes better practices for file sharing, which include but aren’t limited to: taking advantage of faster bandwidth and enabling longer seeding periods.
The other firm up on the chopping block, so to speak, is Fetch.AI, which manages an “artificial intelligence-driven, decentralized blockchain network, wherein the economic activity is performed by Autonomous Economic Agents (AEAs).” While this sounds quite nebulous and buzzwordy, Fetch will reportedly facilitate hospitality-, transportation-, energy-, and supply chain-related transactions and transfers of data on its blockchain.
Although Binance’s attempt to revive one its businesses is commendable, some are fearful that the upcoming sales will garner little-to-zero traction. The U.S. Securities and Exchange Commission recently began to double-down on its crackdown against unregistered token sales. Case in point, the regulatory incumbent fined two crypto projects, before fining the founder of the decentralized exchange EtherDelta.
The SEC even recently fined Floyd Mayweather and DJ Khaled for promoting a number of ICOs without disclosing their relationship with the companies involved.