A new path has emerged for crypto-native founders to launch the next generation of networks and companies: The Fair Launch.
The Fair Launch enables founders to leverage existing networks to bootstrap distribution and build long-term, highly engaged, collaborative communities. New forms of network collaboration—not competition—sit at the heart of the Fair Launch.
What is a Fair Launch?
When we say Fair Launch, it means the launch (coin/token of the project) is fair to all investors and communities interested in the project. Specifically:
- That coin/token must be decentralized and earned, owned and managed by the community from the start.
- Everyone (community, retail investors, large mutual funds) can participate equally.
- There is no early access, pre-mining, or token allocation (in other words, no seed round or private sale for cheap bulk-buying funds).
Why Does a Fair Launch Matter?
If you’ve been in the crypto market long enough, you’ll be no stranger to the concept of “dump”. This word refers to investment funds investing early in a project and buying a large number of project tokens at a cheap price. Wait until that cryptocurrency is listed on the exchange, then retail investors (community interested in the project) can buy it and this is also the time when the funds sell their tokens at a much higher price the price they buy.
If a project is potential, the project token can still increase in price in the long run and small investors can still make profits, but if you invest in a project that is “inflated”, it means that the project has no value but is pushed by the marketing team and the market maker team to create FOMO, then the fact that you only have the opportunity to buy the token when it goes on the exchange will make you buy at the peak price (or your “peak swing” rate is very high).
Stemming from the fact that most retail investors find it difficult to find investment opportunities to earn big profits like the big players and after many years with a lot of projects designed Tokenomics is beneficial for large funds to invest. From the beginning, Fair launch was born as a return of fair position to investors with small capital.
At its core, the Fair Launch enables founders to quickly get to market, while skipping the traditional fundraise and improving token distribution. For users, Fair Launches enable anyone to participate, creating new conditions for self-governing communities.
However, there is a limitation for the project team if they choose Fair Launch as their token issuance method, that is, when they do not raise capital from venture capital funds, the project will have to spend money on product audits. (check each line of code). But now the amount of money for hiring an audit company like CirtiK or Quantstamp… is huge. With small projects that do not have audit money, there is a risk that when the product is released, there may be bugs and the risk of being hacked from these vulnerabilities is very high.
The solution to this problem is Fair Launch Capital. This is a group that wants to pay for the product audit of the projects before the launch and then collect their sponsorship after the project launches. The projects selected to sponsor are projects voted from the community (understandably, a lot of votes mean that it is a community project that is interested and if launched, it is likely to have many users).
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