The Launchpad concept is on the rise, and the Golden Shovel is the best narrative at the moment?

Original | Odaily

Author | Azuma

“Golden Shovel” is becoming the best narrative on the market right now.

The rise of inscriptions has reinvigorated the discussion about the fair distribution of tokens, but with the accelerated influx of “scientists”, ordinary users are now unable to match the efficiency of the former in the minting process, leaving only a few leftovers to fight for.

As a result, institutionalized fair distribution platforms began to emerge.

Earlier, Bounce, a veteran Launchpad project, entered the Bitcoin ecosystem and incubated popular assets such as MultiBit (MUBI) and BitStable (BSSB) through a relatively fair lottery and staking distribution scheme, and its governance Token AUCTION also rose sharply because of the utility of the “golden shovel”, which was tentatively traded at $41.83 as of press time, a monthly increase of 334.7%.

The first phase of Bitcoin Cats, which was launched by BakerySwap of the Non-fungible Token trading platform, achieved 150 times oversubscription after entering the Bitcoin ecosystem, and BAKE itself soared all the way, as of press time at $0.74, a monthly increase of 414.8%.

TurtSat, the native Launchpad project of the Bitcoin ecosystem, also performed well, with TURT tentatively trading at $0.079 as of this post, a monthly increase of 1795.8%.

The immediate appreciation effect is spurring more and more projects to expand into the Bitcoin ecosystem with launchpad as an incision, Dego Finance announced this transformation at the beginning of the month, and although it has not yet been released as of this article, DEGO still achieved a monthly increase of 123.3%, tentatively trading at $4.18.

The crazy mood is not limited to the Bitcoin ecosystem, the new platform Analysoor of the Solana ecosystem has also been widely sought after by the community through a unique lottery mechanism (only one Address can be won per block), and its Token ZERO also refreshed the ATH this morning, once approaching $3.

Looking back at the past decade of Crypto, from the 100% mining distribution of PoW, to the group of demons in the ICO era, to the unlimited scenery of major exchanges in the IEO era, and then the Decentralized Finance boom set off by liquidity mining, the only innovation that can really run through the timeline is the endless Token distribution method.

Token distribution in PoW is relatively inefficient and cannot be replicated in today’s environment.

In the most frenzied era of ICOs, due to the lack of systematic project review and post-investment constraint mechanisms, a large number of inferior projects flooded the market, and it was not uncommon to raise huge amounts of money by relying on white paper alone, and many projects eventually failed to even be listed.

Although the lack of vetting was mitigated to some extent in the early days of IEOs, and projects had to be screened by exchanges before reaching investors, this model eventually fell silent as competition intensified and shoddy projects proliferated again. Compared with the previous era, IEOs do directly solve the problem of tokens, but the inherent licensing drawbacks of CEXs determine that exchanges can control the life and death of projects, in addition, high market-making fees and opaque fee mechanisms also put a huge burden on project parties.

Although the Liquidity Mining model realizes the distribution of permissionless Tokens, the project team has to choose to overdraft the future value to incentivize liquidity providers, and continuing to incentivize will only lead to continuous selling pressure, and once canceled, it will immediately see the withdrawal of speculative funds, thus falling into a dilemma.

In the case of Launchpad or IDO, this model does solve some of the problems of the earlier models mentioned above, but it is by no means perfect. In the long run, how to ensure the fairness of the distribution mechanism and how to screen the quality of new projects is an ongoing challenge for all Launchpad platforms.

At the beginning of the last Bull Market, we saw many Launchpad concept projects “hit the sky”, but eventually “fell into the dust”. The reason for this is that the above two major challenges cannot be effectively solved, especially the second one, after the novelty fades, the valuation of new targets will become more and more rational.

At present, short-term emotional blessings can create a crazy wealth effect, but whether this effect can be maintained still needs to be questioned for the time being.

Don’t FOMO, remember DYOR.