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Token launchpads: how sales work and how to check them

A launchpad hosts token sales for new projects. The format can look attractive, with early pricing and limited allocations, but the same pressures that make a sale appealing also make scams common. This page explains the mechanics and a checklist for due diligence.

Public, private and community sales

Sale formats differ in who can join, how tokens are priced and what lock-ups apply. A public sale is open to any eligible buyer. A private or seed round is usually reserved for institutions or insiders, with better pricing and longer vesting. Community or fair-launch formats aim to spread allocation more widely, though they still carry high risk.

Due diligence checklist

  • Team: are named people responsible, and can you verify their background independently?
  • Product: does the project have a working product, or only a roadmap and a whitepaper?
  • Tokenomics: how much supply goes to the team, investors and the public, and when do they unlock?
  • Contracts: are the token and sale contracts published, and do they match the addresses on the official site?
  • Audits: look for a named report from an audit firm and read its findings. A badge alone is not enough.
  • Legal and jurisdiction: check whether the sale is available where you live.

Red flags

  • Guaranteed returns or fixed profit promises.
  • Urgency, such as 'only 2 hours left', used to rush decisions.
  • Requests to pay in a token or to a personal wallet rather than a published contract.
  • Anonymous teams combined with unlocked team allocations.
  • Support or 'admin' accounts that message you first.

Before you buy

  1. Reach the launchpad through a bookmark or by typing its domain.
  2. Confirm the sale contract address on an independent explorer.
  3. Read the vesting schedule and the withdrawal rules.
  4. Decide the maximum you can lose and never exceed it.

Related guides

Once you hold a token, the swap guide explains price impact and contract checks, and the staking guide covers lock-up terms that may apply after a sale.