Tokens launched through exchange-run launchpads have shown promising returns in 2021, with double-digit returns recorded, according to a recent report by MEXC Research. Despite the success in terms of returns, the fundraising channel still presents challenges for retail users in terms of steep valuations and opaque allocations.
The report analyzed numerous offerings across both centralized exchange (CEX) and decentralized exchange (DEX) platforms. In the first half of the year, there were five listings with an average peak return of 10.83 times the sale price, making it the top performer in terms of deal count. Bybit stood out with the best single outcome, achieved by Xterio, with a return of 14.71 times the initial investment. However, users were required to lock platform tokens through a tiered system.
On the other hand, Gate.io offered a lower entry cost of 1 USDT, but most of the allocation still went to stakers who met specific snapshot rules. DEX platforms like Pump.fun matched CEX returns at times and provided unrestricted access, but participants faced challenges such as extreme price swings and a higher risk of rug pulls due to listings skipping due diligence reviews.
The report highlighted structural flaws that impact post-sale performance, including listing tokens at inflated fully diluted valuations while releasing only a small circulating supply. This often leads to early holders and platforms selling into the initial wave of secondary-market demand, causing immediate drawdowns that erode confidence among retail buyers.
Moreover, access design on launchpads tends to favor insiders, with CEX programs benefiting large balance holders and DEX bonding curves being susceptible to bots front-running manual buyers. These practices undermine the democratic offering narrative that token sales originally aimed to achieve.
To address these flaws, emerging models like fair launch frameworks with dynamic pricing and contribution-based systems such as Virtuals Genesis are being developed. These models aim to widen distribution without overpricing tokens and allocate spots to users based on network testing or holding ecosystem NFTs rather than staking capital. Additionally, full-cycle incubation programs are being implemented to provide liquidity, marketing, and post-listing oversight for projects.
The report recommended implementing hard caps on fully diluted valuations, higher public-round ratios, and flexible qualification criteria that align with project maturity. Post-launch accountability metrics were also suggested to track whether listings meet development milestones after the initial sale.
In conclusion, launchpads are expected to continue dominating early-stage distribution in the next market upswing. However, models that balance return potential with transparent allocation and realistic pricing are likely to retain user trust in the long run.