The fair launch is the process by which the circulation of new crypto currency or new tokens is distributed to individuals without favoritism or considering a particular group of investors to have early access to the token. Launching a crypto project therefore is important as it surfaces investment opportunities, but a fair launch ensures that the future success of the project is certain. It ensures the decentralization and transparency of a project or a newly released cryptocurrency.
Fair launch, however, ensures that the distribution of a new token or new cryptocurrency is distributed among investors and individuals equally or fairly before it is launched. Crypto distribution of popular coins is majorly reserved for early investors and founders. The fair launch was introduced in cryptocurrency to set apart these inequalities.
Crypto tokens are developed to create opportunities for investors and individuals who believe in your coming business. But, developers, on the other hand, do not distribute their tokens fairly, they tend to distribute the tokens to themselves first leaving the general public. Fair launch, however, distributes cryptocurrency fairly to all individuals without pre-allocation or pre-mining of a particular coin to a selected group of investors and founders.
What Is Fair Launch?
The fair launch is the ability of investors and crypto developers to ensure that during a crypto or token launch, the distribution is conducted fairly without pre-allocating or pre-mining of the particular crypto to a selected group of investors or developers. A fair launch ensures that everybody has accessed the tokens the right way before it is launched. In a decentralized network, fair launch ensures that all investors and the general public have acquired cryptocurrency or crypto tokens at the same price.
Fair launch is an important concept that is utilized in the cryptocurrency industry, particularly decentralized finance (DeFi). It ensures projects that are developed in the decentralized industry emphasize transparency, decentralization and democratization during the launch of projects or cryptocurrency. Fair launch, therefore, ensures that a project or a developed cryptocurrency is free from insider trading or manipulation before it is launched.
A fair launch plays a crucial role during a project launch or new cryptocurrency, fair launch ensures that there is no favoritism. All investors are equal, despite their financial class, where they are located or their social status. This ensures that no individual or investors acquire early access to the new cryptocurrency. This ensures decentralization and democracy among investors. Additionally, it maintains transparency, and the distribution of wealth is fair, besides, it is not only accumulated by the rich.
Therefore a fair launch is a process by which when a new cryptocurrency is developed to the market, it ensures that distribution is done fairly without early access to the new crypto by a selected group of individuals or a certain class of investors. However, how does a crypto launch work?
How Fair Launch Works
Fair launch has proven to be the best way to distribute cryptocurrency, therefore, there are various steps in Utilizing fair launch in crypto distribution. What are the steps that conclude that a particular is distributed fairly? Below are the steps.
Token Sale
This is the first step to the fair launch of any particular token or cryptocurrency. The main objective is to raise enough funds and enough capital to promote the project. Investors are required to purchase the particular coin at a fixed price. This ensures a fair launch, it does not discriminate against several investors, and it ensures that no better treatment is saturated to a group of individuals.
The project developers set certain goals to be achieved, they ensure that enough funds are raised. They set the minimum and maximum amount of funds to be raised by investors. If the funds do not reach the minimum amount, the funds are released to investors and the project is canceled. But when the funds exceed the maximum amount, the project continues, and the exceeding money is used to develop the project further.
Exchange Listing
Listing a developed cryptocurrency or token on the exchanges is another procedure, listing the crypto on an exchange provides investors with liquidity. This ensures that the buying and selling of crypto increases the value of the presumed cryptocurrency. To ensure an increase in the value of the tokens, the project should meet exchange requirements. For example, developers can move and provide the aim of the coin and the technology. Additionally, listing the crypto in the exchange ensures the credibility and visibility of the project.
Importance Of Fair Launch
Fair launch as discussed earlier ensures that each individual is given an equal distribution of cryptocurrency without favoring a group of investors. But what is the importance of employing fair launch in crypto projects? Foremost is transparency, distribution of a new cryptocurrency should be transparent without favoring a certain group of people or investors. Distribution should therefore be publicly announced and distributed, additionally, the number of tokens, and the price of the token available should be mentioned.
Besides, a fair launch ensures decentralization, when a new cryptocurrency is announced and distributed fairly, it ensures that all participants have access to the particular token. It avoids the concentration of the particular token to a group of investors. This therefore promotes decentralization. Additionally, it ensures that no centralized authority or centralized power is controlling the new cryptocurrency. Therefore, fair launch promotes equal circulation of tokens which ensures decentralization and discourages manipulation and centralized power in the project.
Conclusions
Fair launch is a concept that should be used while bringing a new cryptocurrency to the market, despite, it has been proven to ensure fair circulation of cryptocurrency among members. It has eliminated centralized power on a particular token, it encourages decentralization, transparency and fairness among investors. Employing a fair launch in each project, all market participants and investors have equal access to new cryptocurrency and crypto tokens.
