What is a crypto launchpool?
Launchpool is a platform designed to distribute tokens of new projects by allowing users to stake their cryptocurrency. The project provides the launchpool with a specific amount of tokens, which are then distributed to users who lock their assets on the platform.
The amount of rewards each user receives—typically shown as APR (Annual Percentage Rate)—is calculated based on their individual stake relative to the total staked amount by all participants.
How to choose the best crypto launchpool?
Before selecting a suitable crypto launchpool, it’s essential to research the platform and assess whether it aligns with your needs. The most important factors include the platform’s reliability and security—make sure it has been audited by reputable firms and has a strict vetting process for selecting altcoins for launch. You can evaluate this by reviewing the track record of previously launched tokens and the performance of those projects.
Another critical consideration is geo-availability. If the launchpool is hosted on a centralized exchange, it may not be accessible in certain regions due to regulatory restrictions. Finally, look at user experience factors, such as:
- Ease of use of the platform
- Frequency of token launches
- Average APR (Annual Percentage Rate) from previous campaigns.
Why you should use a crypto launchpool
Participation in crypto launchpools is viewed as a relatively accessible method for earning passive income and diversifying a crypto portfolio. Since most platforms follow a mining-style model, users don’t need to purchase new tokens—instead, they stake existing assets to earn rewards, which helps reduce risk.
While it’s still essential to conduct your own research on any token you plan to add to your portfolio, a launch on a reputable launchpool platform usually indicates that the project has undergone a certain level of vetting by the platform’s team.
Launchpool vs Launchpad: What’s the Difference?
While both launchpools and launchpads are designed to introduce new crypto projects and tokens to the market, they operate through different models:
- Launchpool platforms allow users to stake existing cryptocurrencies (like USDT, BNB, or ETH) to earn new project tokens as rewards. This approach provides a way to access early-stage projects by utilizing already held assets.
- Launchpad platforms, by contrast, are focused on token sales (often called Initial Exchange Offerings or IEOs). Users acquire new tokens, usually at a fixed or tiered price, often before they are publicly listed. We also have a Top Picks article on the Best Launchpads in 2025, which you may find helpful to explore further.
Conclusion
Launchpools are considered an accessible and user-friendly option, especially for beginners, as no active trading is required. However, participation may involve staking certain tokens not already held in a portfolio, which could require purchasing or borrowing This can introduce additional risks due to market volatility. This article has outlined the best launchpools of 2025, based on our team’s review.
FAQ
A platform where users can invest in new projects by locking their tokens to farm an allocation of new tokens.
Yes. One key risk is market volatility, especially if you need to buy or borrow tokens to stake. Prices can fluctuate significantly, which may impact the value of your staked assets and rewards.
The APY primarily depends on the total size of the rewards pool in the new token, as well as the total amount staked by users farming that token.
A launchpool lets you earn new tokens by staking your existing crypto assets, with rewards proportional to the total assets staked in the pool. A launchpad, on the other hand, allows you to acquire new tokens by directly purchasing them, often through an initial offering.
Most launchpools allow flexible unstaking, but some may have a lock-up period. Always check the specific terms for each launchpool before participating.