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Binance Launchpool, or how to get cryptocurrencies for free
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Binance Launchpool, or how to get cryptocurrencies for free

created Forex ClubJanuary 5 2024

Binance Launchpool This is an interesting way to expand your cryptocurrency portfolio with tokens that are just entering the market and increase the value of your portfolio "crypto-wealth". From this article you will learn what the Launchpool service is, how to start your adventure with it and how to receive new cryptocurrencies for free. But let's start from the beginning.

Note: The following article is for educational purposes only. It does not constitute a recommendation or encouragement to purchase any cryptocurrencies. Its sole purpose is to explain the Binance Launchpool mechanism. Remember that cryptocurrencies are high-risk assets! Invest responsibly.

What is Binance Launchpool?

Binance Launchpool is the largest service in the world giełda kryptowalut offers to help new projects pre-distribute their tokens. Thanks to this, new projects that are not yet listed on the stock exchange gain publicity, the first users, and the users themselves gain tokens, which they can keep or cash in (when they are valued by the market on the day of listing). Where do the tokens themselves come from? They are distributed as a pool allocated by the project itself as "marketing cost" to start the whole action. Everyone benefits from this - the creators, Binance, and the end user.

Main condition: cryptocurrency staking

Of course, the title phrase free has a catch, because as we know, there is nothing in life completely free. The condition for receiving tokens of new projects is that we have selected cryptocurrencies, such as: BNB, FDUSD or TUSD, depending on the conditions of the launchpool itself (more on this in a moment). These cryptocurrencies must then be spent on the so-called staking, i.e. deposit into the pool of funds on the Binance platform.

What is staking? To put it simply, we can say that it is the equivalent of a term deposit as we know it in banks, except that we deposit cryptocurrencies here not in a bank, but on the stock exchange. When we allocate our tokens for staking, we choose a deadline "freeze" assets (e.g. 30, 60, 120 days) on Binance. In return, we receive interest in a given cryptocurrency, which is distributed daily.

In the case of BNB, it currently looks like this:

bnb staking

BNB cryptocurrency staking offer. Source: Binance

We can sell the received interest immediately, put it back into staking (manually or automatically) or keep it. We can too "break off" staking at any time, which of course will mean the end of participation in the ongoing launchpool.

Launchpool: How many tokens can you get?

When the launch of a new project is coming, Binance informs in advance about its launch and all conditions. One of them, which is an integral part of every launchpool, is the mentioned staking of the selected cryptocurrency (it is always BNB, sometimes there are others, e.g. stablecoiny such as TUSD or FDUSD). Having staked cryptocurrencies on our Binance account, we automatically take part in the launchpool, so we won't miss any opportunity. When farming starts (starting to allocate tokens to users), they are added to us. The allocation depends on the number of stablecoins and/or BNB that we have frozen for the duration of farming.

For example:

If there are 1000 tokens to be distributed per day in the entire pool, our'frozen'‚ assets constitute 1% of all ‚'frozen' assets for the duration of staking, at the end of the day we will receive 10 tokens.

All new cryptocurrencies will appear when farming is completed, but you can also collect them yourself every day (just click "Take It All Back", which you will notice in the screenshot at the very bottom of the article). In practice, it does not matter, because until the quotations are launched, which always happens after the end of farming, we cannot do anything with them, and in the end we will get what we are entitled to.

Tokens are transferred to our account at no cost. However, it is difficult to predict how many we will receive, because it all depends on how much capital will be frozen in the farming phase (the entire community, as well as ours). During one of the last launchpools, the subject of which was NFPrompt(NFP), it was 2.5-3%. 2.5% for stablecoin staking and 3% for BNB staking.

After assigning tokens to a new project, we can decide what to do with them next - leave them or sell them. The NFP token mentioned above behaved as follows:

nfproject crypto

NFP/USDT quotes. Source: Binance

But no one knows how it will develop in the future. At last Bitcoin it used to cost a few dollars too, right?

How to receive new tokens? Step by step

The theoretical part is already behind us. So let's move on to practice, where we will show you what the whole process looks like. At the time of writing this article, it has taken off XAI project launchpool. Since you can join it at any time, it will serve as an example to show how this solution works.

Step I – Binance account

At the very beginning, you need to have an account on Binance. You can eat them assume from here i receive -10% lower commission to purchase future cryptocurrencies. To make a payment, it is necessary to complete the entire procedure including document verification.

Step II – Purchasing cryptocurrencies

To participate in launchpools, you must have the appropriate cryptocurrencies in your wallet. In the case of the XAI project, this is BNB, FDUSD or TUSD. So the next step is to buy them on the stock exchange.

Always check the terms and conditions of a given launchpool carefully. For XAI they are located on the Binance website here.

After purchasing a given cryptocurrency, you need to start staking it. On the mobile application, this option is available in the section Wallet -> Earnings -> Earnings -> selecting cryptocurrency -> selecting confirmation of subscription (staking) -> Confirm.

In the example below, the BNB cryptocurrency was selected for a period of 120 days and an interest rate of 3,5%. To be approved, you must have a minimum of 0,001 BNB (this value may vary depending on the subscription period).

launchpool binance staking bnb

Selecting BNB staking terms. Source: Binance

Step III – Token collection

At this point, we are already participating in the launchpool. In the case of XAI, farming started at 00:00 on January 5, 2024 and will last until the end of January 8, 2024. As you can see in the image below, on the first day for staking approximately 4,6 BNB, we were allocated approximately 4,8 XAI tokens, which we can collect now currently ("Take It All Back") or wait. All collected tokens will be transferred to the staking account on January 9 at 10:00 Polish time, and exactly one hour later the quotes will start.

bnb staking on binance

BNB staking and XAI launchpool. Source: Binance


Note: The above article is for educational purposes only. It does not constitute a recommendation or encouragement to purchase any cryptocurrencies. Its sole purpose is to explain the Binance Launchpool mechanism. Remember that cryptocurrencies are high-risk assets! Invest responsibly.
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About the Author
Forex Club
Forex Club is one of the largest and oldest Polish investment portals - forex and trading tools. It is an original project launched in 2008 and a recognizable brand focused on the currency market.
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