The Return of ICOs? How Token Launchpads Are Reshaping Crypto Fundraising

A New Era for Crypto Fundraising: Are ICOs Making a Comeback?

The wild days of 2017’s Initial Coin Offering (ICO) boom may feel like a distant memory, but crypto fundraising is far from dead. Instead of unregulated token sales that left many investors burned, a new model has emerged—token launchpads. Platforms like Binance Launchpad, Polkastarter, and DAO Maker have redefined how early-stage projects raise capital, offering more structured and (in some cases) safer opportunities for investors. But with regulatory scrutiny still looming and countless projects vying for funding, is this new model a true revival of ICOs, or just another phase in crypto’s evolving landscape?

From ICO Frenzy to Launchpad Evolution: What Changed?

During the ICO craze of 2017-2018, startups could raise millions simply by selling tokens on Ethereum-based smart contracts. However, the lack of due diligence and rampant scams led to billions in investor losses. Regulators cracked down, the hype faded, and traditional ICOs virtually disappeared. In their place, launchpads emerged as a more structured and selective way to introduce new tokens to the market.

Unlike ICOs, where anyone could participate with little oversight, launchpads curate projects and vet teams before allowing them to raise funds. Binance Launchpad, one of the largest in the space, introduced Initial Exchange Offerings (IEOs) in 2019, where tokens launch directly on an exchange, ensuring liquidity and reducing risk. Similarly, Polkastarter and DAO Maker pioneered Initial DEX Offerings (IDOs), which allow projects to raise capital through decentralized platforms while giving early investors access to new tokens at pre-market prices.

Which Projects Are Thriving on Launchpads?

Launchpads have given rise to some of the most successful blockchain projects of recent years. Binance Launchpad facilitated the fundraising for Axie Infinity (AXS) and StepN (GMT), both of which saw massive post-launch price surges. Meanwhile, DAO Maker helped launch projects like Orion Protocol and MyNeighborAlice, bringing millions of dollars in liquidity and user adoption.

In 2024, AI-driven blockchain projects, GameFi tokens, and decentralized infrastructure solutions have dominated launchpad trends. Pixelmon, a Web3 gaming project, raised over $70 million, despite early controversies, while newer DeFi protocols like Sei Network and Sui leveraged launchpads to gain traction before hitting the open market. As institutional interest in Real-World Assets (RWAs) grows, platforms facilitating tokenization of bonds, real estate, and equities are also expected to surge in popularity on launchpads.

Can Retail Investors Still Profit from Launchpads?

For early-stage investors, launchpads offer the closest thing to ICO-like opportunities in today’s market. However, participation is more competitive, often requiring users to hold a platform’s native token (such as BNB for Binance Launchpad or POLS for Polkastarter) to secure allocations. The whitelist process and tiered participation models mean that high-value investors and longtime supporters often get priority access.

Despite the structured approach, not every launchpad project succeeds. Many tokens experience initial post-launch hype, only to decline in value as liquidity fades and retail interest wanes. Data from Token Unlocks suggests that over 50% of tokens launched via IDOs experience price drops within six months. As a result, careful research, risk management, and understanding vesting schedules remain crucial for investors looking to participate.

"The launchpad model offers more transparency than ICOs, but investors should still evaluate project fundamentals before diving in." — CZ, Founder of Binance

Regulatory Uncertainty: A Potential Roadblock?

Despite their popularity, launchpads operate in a regulatory gray area. With U.S. authorities cracking down on unregistered securities, many launchpads exclude American investors to avoid legal complications. The SEC’s lawsuits against major exchanges, including Binance and Coinbase, have raised concerns that token sales could face stricter enforcement actions.

However, some launchpads are adapting by implementing KYC (Know Your Customer) procedures and working with regulated jurisdictions. DAO Maker, for example, has shifted towards venture-style fundraising, allowing projects to raise capital from accredited investors in compliance with securities laws. While the full regulatory picture remains uncertain, it is clear that governments are paying closer attention to crypto fundraising models than ever before.

Final Thoughts: The Future of Token Launchpads

While traditional ICOs may never return in their previous form, launchpads have cemented themselves as the new standard for crypto fundraising. Their ability to provide early investment opportunities, liquidity, and a vetting process makes them a valuable tool for both startups and investors. However, the risks remain—not every project succeeds, token vesting schedules impact prices, and regulatory challenges loom.

As crypto adoption continues to expand, launchpads will likely evolve alongside the market, incorporating more compliance measures, decentralized governance, and AI-driven vetting. For now, they remain one of the most exciting ways to get in early on the next big blockchain innovation—but, as always, do your own research before investing in any token launch.