The Binance Launchpool is a program that allows users to earn new cryptocurrency tokens for free by staking their existing digital assets, such as BNB (Binance Coin) or stablecoins like FDUSD or USDC, for a specified period.
How does the Launchpool work?
* Announcement of a new project: Binance announces a new cryptocurrency project that will be launched through the Launchpool.
* Staking period: Users stake their digital assets (such as BNB or FDUSD) in "pools" designated for this project. A specific staking period is set (for example, 7 days or 30 days).
* Earning new tokens: During the staking period, users start earning new tokens for the project continuously (rewards are usually calculated hourly). The amount of tokens earned by the user depends on:
* The amount of assets that have been staked.
* The announced annual percentage rate (APR) for the project.
* The total amount of assets that all participants have staked in the pool.
* Flexibility: The Launchpool is characterized by flexibility, allowing users to withdraw their staked assets and earned rewards at any time without restrictions or fees.
* Listing and trading: After the staking period ends, Binance usually lists the new currency on the spot trading market, allowing users to trade the tokens they received as rewards.
Main features of the Launchpool:
* Getting new tokens for free: Allows users to earn promising cryptocurrency tokens without needing to buy them directly.
* Return on assets: Users can achieve a return on their digital assets (such as BNB) that may be unused.
* Lower risks: It is considered less risky than some other investment methods, as it does not require a direct investment in the new currency (only staking existing assets).
* Withdrawal flexibility: Users can withdraw their funds and rewards at any time.
* Support for new projects: The Launchpool helps new projects gain visibility and distribute their tokens to a wide user base.
The difference between Launchpool and Launchpad:
It is important to distinguish between "Launchpool" and "Launchpad" at Binance:
* Launchpool: Allows users to earn new tokens by staking their existing assets.
* Launchpad: Allows users to buy new tokens by participating in Initial Exchange Offerings (IEOs) using BNB.
In summary, the Launchpool at Binance is a great opportunity for Binance users to acquire promising cryptocurrency tokens for free and contribute to supporting new projects in the cryptocurrency world.
