The Resurgence of Public Sales in the Crypto Market: A New Era Led by Launchpad Platforms

The cryptocurrency market is undergoing a transformation as public sales make a robust comeback, evolving significantly from the initial coin offering (ICO) boom of 2017. Platforms like Legion, Buidlpad, Sonar, and Kaito Launchpad are driving this revival, offering structured, regulatory-compliant mechanisms for token allocation and participant selection. With innovative operational models and adherence to Know Your Customer (KYC) protocols, these launchpads are redefining how projects connect with early adopters and secure liquidity.

Although the current enthusiasm for public launchpads may fluctuate, their foundational role in the cryptocurrency ecosystem is poised to grow stronger, serving as vital structures for fostering communities and funding early-stage projects.

From the ICO Boom to the Structured Revival of Public Sales

The ICO frenzy of 2017 brought immense capital into the cryptocurrency sector, but rampant fraud and lack of transparency quickly undermined investor confidence, resulting in its decline. This downfall ushered in an era dominated by private sales, which shifted investment opportunities to institutional players, leaving retail investors largely excluded from early-stage projects.

Now, public sales are experiencing a notable comeback, thanks to regulatory advancements. For instance, the Markets in Crypto Assets (MiCA) framework in Europe has created a transparent licensing landscape, enabling token sale platforms to operate within clear legal guidelines. Furthermore, regulations in Asia and the Middle East have established ecosystems conducive to KYC-compliant token sales, driving the revival of public launchpads in a more structured and trustworthy manner.

This article further explores the innovative strategies adopted by emerging launchpads and assesses their impact on the evolution of the public sale model.

Key Launchpad Platforms Leading the Public Sale Renaissance

The reemergence of public sales has given rise to diverse launchpad platforms, each leveraging unique methodologies to attract investors and allocate tokens. Below, we delve into four leading platforms and their strategic approaches to reshaping the market.

1) Legion: Community Contribution-Focused Public Sales

Legion stands out for its emphasis on fostering mutually beneficial relationships between projects and investors. Instead of focusing solely on financial contributions, the platform employs a merit-based selection process that evaluates participants' long-term value to the ecosystem. Utilizing its proprietary “Legion Score,” which analyzes on-chain activity, social influence, and GitHub contributions, the platform prioritizes individuals who demonstrate genuine potential to support project success.

Additionally, Legion mandates that applicants submit personalized cover letters detailing how they can contribute to proposed projects, further enriching the selection process with qualitative insights. For instance, one of its recent token sales for Yield Basis attracted over 67,000 applicants, using a rigorous evaluation system that took into account social advocacy, technical contributions, and other metrics.

Despite receiving praise for its innovative community-building approach, Legion has faced criticism regarding the concentration of allocations toward select influencers. In response, the platform issued a transparency report outlining its criteria for distribution, acknowledging the inherent challenges of balancing subjective evaluations with fair token allocation. Despite these obstacles, Legion represents a progressive shift toward sustainable funding models centered on community involvement rather than speculative investment.

2) Buidlpad: Pioneering Liquidity-Driven Token Sales

Buidlpad, primarily focused on the Sui ecosystem, adopts a liquidity-driven model for token allocation. In contrast to merit-based systems, this platform employs a fundraising mechanism where participants stake funds into liquidity pools tied to specific projects. Token pricing and allocation are tiered based on the amount staked, granting preferential rates to higher-tier participants.

This model delivers notable advantages, including low barriers for investors with significant capital and immediate liquidity for projects post-sale. Momentum, a project recently launched via Buidlpad, leveraged this system to achieve substantial Total Value Locked (TVL), demonstrating the potential for early-stage success through liquidity-centric strategies.

Nevertheless, this approach has drawbacks, as it inherently favors financial realities over expertise or widespread participation. To enhance inclusivity, Buidlpad introduced a “Squad” system, gamifying contributions to foster active community engagement. This initiative rewards users for creating content, promoting projects online, and interacting within the community, positioning Buidlpad not only as a fundraising platform but also as a hub for robust ecosystem development.

3) Sonar: A Decentralized and Customizable Token Sale Framework

Sonar, a token sale platform developed by Echo, distinguishes itself by offering flexibility in sale structures. Unlike its parent platform, Echo—known for its exclusive syndicate investment model—Sonar caters to a larger audience, allowing projects to tailor their token sales regarding schedules, pricing, and allocation plans.

In addition to KYC compliance, Sonar transforms participant information into secure eligibility attestations to preserve privacy while meeting regulatory requirements. Through its customizable nature, platforms such as Plasma and MegaEther have successfully launched token sales on Sonar.

However, this decentralization brings potential risks. Inconsistent sale structures may lead to confusion or disputes between projects and investors. The lack of uniform rules also introduces regulatory and operational challenges, which may deter risk-averse investors from participating.

4) Kaito Capital Launchpad: Leveraging Social Influence in Token Allocation

Kaito Capital Launchpad, branching from the AI-powered Kaito analytics platform, leverages social influence metrics to optimize participant selection. The platform’s proprietary Yaps system analyzes factors like historical token holdings, on-chain activities, and geographical restrictions to prioritize socially impactful participants for allocation.

This social-driven model encourages organic promotion of projects, as influential investors amplify visibility among their networks. However, the system has its limitations, such as high barriers for less established participants or those who may contribute in non-social spheres, such as technical development.

Despite its challenges, Kaito’s social-based framework offers projects an innovative approach to build momentum and engage communities during pre-launch stages.

Assessing the Longevity of Public Launchpads

The effectiveness and future of public launchpads depend on their ability to balance competing priorities. On one hand, investors benefit from renewed access to early-stage opportunities previously dominated by institutional players. Public launchpads allow retail participants to engage in token economies from their inception and contribute their expertise, liquidity, or social reach.

On the other hand, the market faces risks of overheating and diminishing returns. As previous initial decentralized offering (IDO) cycles achieved monumental gains, the current market environment shows a more muted response. Over-speculation by projects could undermine community quality, while declining returns may discourage long-term engagement.

Despite potential challenges, structural demand for curated launchpad platforms is unlikely to dissipate. Blockchain ecosystems are increasingly complex, requiring innovative tools to support community-building and secure funding. Public launchpads serve as efficient alternatives to standalone Token Generation Events (TGEs), mitigating risks while connecting vetted participants with promising projects.

As regulatory guidelines evolve and technology advances, public launchpads are expected to remain integral to the cryptocurrency ecosystem’s sustainable development. By balancing inclusivity with effective participant curation and addressing transparency concerns, these platforms are positioned to shape the next wave of innovation in the crypto space.