Binance Achieves 78x Launchpad ROI, But Long-Term Holders Face Challenges — Here’s Why

Summary:
Binance's launchpad ecosystem has delivered remarkable returns in the cryptocurrency market. However, there is a growing gap between those who quickly exit their investments and long-term holders, leading to concerns about value distribution in token launches.

Key Takeaways

Binance leads in return on investment (ROI) among major investment platforms with 78x ROI from launched projects.
Recent data indicates that early exits yield profits, while long-term holders face challenges as gains diminish.
Market activity is driven more by timely exits than by prolonged holding.
Several platforms, including OKX and MetaDAO, show solid performance, but many launchpads report disappointing returns.

Binance Achieves 78x Launchpad ROI, But Long-Term Holders Face Challenges — Here’s Why

Binance's Launchpad Dominance

Data from DeFi Oasis and CryptoRank highlights Binance Wallet as the front-runner among ICO, IDO, and IEO platforms, far surpassing its competitors. Over the past year, Binance Wallet recorded an impressive current ROI of 12.69x, with an all-time high ROI peaking at 78.01x across 44 projects.

The latest launch occurred on December 17, showcasing Binance's status as the leading venue for primary token distribution. MetaDAO follows closely, boasting a current ROI of 4.15x and an all-time high of 8.73x from seven projects, with its latest launch in mid-November.

In third place, OKX Wallet achieved a current ROI of 3.22x, with an all-time high reaching 34.75x despite launching only three projects this year. This highlights how a limited number of projects can affect performance metrics. Meanwhile, Echo, a platform founded by crypto investor Cobie and recently acquired by Coinbase for $375 million, ranks fourth with a current ROI of 2.83x across 30 projects.

Coinbase aims to enhance community fundraising processes while providing more transparency to public token sales, especially as interest in this area has increased again after a quiet period following the 2017 ICO boom.

Other platforms like MEXC and Kraken Launch reported current ROIs of 1.98x and 1.92x, respectively, while Buildpad delivered a 1.22x ROI, even with an all-time high near 10x from six projects. Many tokens on platforms like LEGION, Cake Pad, and Bybit are trading below their initial launch prices, with eight out of twelve major launchpads tracking current ROIs under 2x and five below 1x.

The Focus on Activity Over Holding

Analysts suggest that the differences in returns stem from the timing of sales rather than the quality of the platforms. According to DeFi Oasis, those who sold shortly after launch often secured profits, while long-term holders faced diminished returns as liquidity decreased and selling pressure increased post-launch.

The observed patterns correlate with broader market movements, with DeFi's total value locked down approximately 32% from February to April due to capital leaving riskier investments. By the year's end, even though some capital returned, the market established a higher baseline, indicating partial retention.

On October 1, launchpad activity peaked at over $530 million. By December, the total value locked dropped to around $342 million, with seven-day fees hitting $7.51 million and total revenues at $6.77 million. Platforms focused on memes and trials, such as pump.fun and four.meme, showed high short-term engagement without sustained holding patterns.

The current landscape illustrates that while launchpads are thriving for those who strategically time their exits, long-term holders are at risk of reduced returns as initial excitement wanes. As compliant launchpads like Sonar, Buildpad, Legion, and Kaito gain popularity, the structure of token launches will continue to evolve. However, the critical factors of timing, liquidity, and disciplined exits remain central to the eventual outcomes.