One thing I have realized is immediately an exchange announces either a launchpool or launchpad, the exchange token continues to surges because many users want to buy and participate to earn free token. So after the event, you get double rewards, you can decide to sell your newly acquired tokens and also sell the exchange token at a higher price. This process has helped me build a great bag. The ENA launchpool event that just ended on Bitget is a testament that participating in this kind of events are greatly rewarding.
Have you explored such opportunities before? Feel free to share your experiences.
Launchpool and Launchpad provide higher APY by staking a stable asset rather the DeFi since there’s a lot of demand for that new token. New project usually choose this path to get funding instead entering the IDO process since this way the price growth will organic because it will came from interested buyers that want to let in on the hype.
But there’s always a danger on joining a pool like this because you are entrusting your funds on CEX while their business can be shutdown when shit happened just like the FTX scenario.
This is the way of CEX to hold the funds of their users in exchange for an airdrop tokens.