which has dominated for over 4 years, continue to shine?

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Binance Launchpad has always been at the forefront with high-quality projects and a stable wealth-building effect. So, what strategic intentions should not be ignored behind its wealth-building effect? This article will explore the intentions and challenges behind the wealth effect of Binance Launchpad in this bear market, as well as the optimization and improvement of future systems.

For a long time, initial coin offerings (ICOs) have been a favored investment method in the financial market, often referred to as "risk-free returns" by some investors. Binance brought this IPO model to the cryptocurrency field with its Launchpad IEO (Initial Exchange Offering) model, combining it with the exchange's own situation.

Since its launch, Binance Launchpad has become the platform for potential projects with the potential to increase in value by hundreds or even thousands of times. As of September this year, the Launchpad has launched a total of 31 cryptocurrency projects, making "grabbing opportunities on Launchpad" a guiding principle for users. After all, following smart money has always been a profitable strategy in the investment world, and who could be smarter than the largest cryptocurrency exchange? The IEO model's low risk and low entry barrier make it the preferred way for users to invest in new projects.

Now, with the bear market approaching and the market's liquidity dwindling, the Launchpad model, with its stable returns, is becoming the new focus for exchanges competing for users. Major exchanges have introduced their Launchpad products, all wanting a share of the pie. However, Binance's LPD (Launchpad) products have consistently led the way with high-quality projects and a stable wealth-building effect. So, what strategic intentions may lie behind its wealth effect? ChainCatcher will explore the intentions and challenges behind Binance Launchpad's wealth effect in this bear market and its optimization and improvement for future systems.

Mechanism Features and Strategic Intentions
IEO, Initial Exchange Offerings, is a term known to many, referring to exchanges acting as issuers, directly distributing tokens to their users and helping projects raise funds directly through the exchange. Unlike the ICO model, IEOs skip the "public offering" phase and directly trade asset shares on the secondary market.

However, the launch of Binance Launchpad is not limited to providing a convenient platform and market for high-quality new projects to its users, nor is it just about valuing user experience or giving back to users. It encompasses deeper strategic intentions.

1. Achieving User Growth
"Products create value, user growth delivers value, and the ultimate goal is value conversion" is the common thinking in product growth. Binance has incorporated this thinking into its Launchpad product. Launchpad creates value for Binance users with its "risk-free" wealth effect, which is a significant factor attracting users. As more and more investors take notice of Launchpad and are willing to try it out, the stable returns of Launchpad also entice these users.

As the wealth effect of Launchpad begins to circulate and expand among investors, it naturally attracts liquidity from outside, and Binance, with its strong influence, becomes the go-to platform for many. Launchpad gradually becomes a tool for increasing platform user growth while increasing the platform's trading volume and market share, consolidating its position as the leading digital asset exchange globally.

2. Maintaining BNB Price
From ICO to IEO, exchanges are seeking a new balance: the "platform coin." Binance, inspired by the IPOs of US stocks, cleverly combined the platform coin "BNB" with the IEO model. Users only need to hold a certain amount of BNB to participate in LPD project subscriptions, and the amount of BNB invested is linked to the distribution of subscribed tokens. This mechanism significantly boosts BNB's purchasing power in the market. When the wealth effect of LPD projects takes shape, it also brings a considerable amount of external liquidity into the BNB market.

In fact, we can consider LPD projects as another way of empowering BNB. Each time LPD launches a new project, it causes fluctuations in the BNB market, and most holders focus on the long-term holding gains of BNB. According to data disclosed by CAPITALISMLAB (from 2021 to April this year), if tokens are sold on the first day, the total BNB return rate is 36%, with an annual return of 14%, even higher than the returns from ETH staking during the same period. This makes BNB one of the most promising cryptocurrencies for long-term investment in the minds of investors. In the bear market, especially, when the cryptocurrency market capitalization drops to historic lows, BNB's market capitalization currently ranks fourth, just below USDT, and Launchpad's stabilizing effect on BNB should not be underestimated.

In summary, with Binance's "top-tier" influence as support, Launchpad attracts a large number of internal and external investors. Investors benefit from holding BNB and participating in IEOs, significantly increasing BNB's return rate and maintaining the stability of the BNB market. Launchpad acts as a moat for the BNB market in the bear market, stabilizing the coin's price while continually attracting liquidity.

3. Increasing Listing Influence
The birth of Launchpad is a key step in revitalizing the platform coin of Binance, but it also implies its ambition to control the listing discourse. From SFP to GMT and then to HOOK, Binance LPD products have never failed to meet expectations. By promoting high-quality projects, Launchpad has built a strong reputation of "risk-free returns" among users and project teams alike, gaining trust and attention for Binance Launchpad.

"Getting listed on Binance" is gradually becoming the belief and "pump warning" for every holder. Fueled by profit motives, more and more investors start to believe in Binance, and Binance becomes the ultimate destination for various projects. The abundance of liquidity, a vast user base, and enthusiastic market responses all increase Binance's listing influence and brand impact. The emergence of Launchpad has become a haven for various new projects.

4. Cultivating User Loyalty
In fact, with recent developments, whether in terms of market share, user growth, or listing influence, Binance is already in the lead. Due to factors such as regulation, Binance's development strategy focus has shifted from competing for market share to cultivating user loyalty.

Since its inception, Launchpad has been one of the main ways for Binance to share platform dividends with users, satisfy user interests, attract user attention and recognition, and enhance user approval and loyalty to the exchange. Binance combines the stable returns of Launchpad with the long-term holding gains of BNB. It not only increases the sources of income for BNB holders but also effectively enhances platform user stickiness and cultivates long-term user loyalty.

Furthermore, the emergence of Launchpad has also allowed Binance to build a more complete digital asset ecosystem. By introducing high-quality projects through Launchpad to attract new users and benefit existing users, Binance's suite of products provides users with more investment opportunities and channels to participate in projects. This continuous expansion of the ecosystem attracts and retains users and converts them into loyal, long-term customers, helping Binance achieve its goals.

So, while Binance Launchpad provides a platform for high-quality projects and a stable wealth effect, it also serves a broader strategic purpose that encompasses user growth, maintaining the price of BNB, increasing listing influence, and cultivating user loyalty.

Isha000

Whether it's a bull market or a bear market, this market is always changing. The key is to be able to make accurate assessments and enter at the right time.