As the barrier for entry into the cryptocurrency industry lowers, a greater number of tokens appear each day. To a degree, this low barrier of entry aids legitimate projects – allowing them to quickly set up and begin operating. Unfortunately, this also allows malicious actors to create fake cryptocurrencies for a variety of potential frauds. In a similar problem to the self-publishing industry, the lack of barriers creates an overwhelming array of options for investors.
The solution may lay in creating intentional gatekeeping devices that short the wheat from the chaff. Lightning Protocol (LIGHT) purports to do just that through its multi-chain launchpad. While launchpads are nothing new in the crypto-space, they usually apply to specific chains or represent an internal function of another project. For example, Binance’s Launchpad program funnels new projects into their Binance SmartChain. In contrast, Lightning offers a means to legitimize projects without tying them down.
Lightning Protocol (LIGHT)
Lightning offers launchpad support for tokens on the Binance SmartChain, Ethereum, Polygon, Cardano, and AVAX. It’s a healthy list that represents a large swath of the platforms most popular for new projects. As part of this launchpad platform, Lightning offers projects direct support, as well as auditing and networking.
These launchpads may be a necessity in the coming years, with hundreds of cryptocurrencies releasing each day. The Binance SmartChain suffers from an absurdly high number of scam-based coins, attributed to the ease of creation and low operational cost. Investors looking to avoid these pitfalls will flock to launchpads and verified exchanges that can offer them a sense of safety.
The Consequences of Proliferation
Beyond the intentionally malicious niche, an avalanche of new tokens can also cause investors to become overwhelmed. Research is a critical component of
The initial key may be to steer away from tokens and towards individual coins – thereby ensuring a degree of developer competence. While unfortunate for small teams with limited development knowledge, it brings the number back down to a reasonable amount while avoiding the more blatant issues.