Launchpools are a popular feature on crypto exchanges that let you earn new tokens by staking your existing assets. They offer a low-risk way to generate returns, often outperforming traditional savings accounts. This guide explains how launchpools work and how to participate on major exchanges.
What Is a Launchpool?
A launchpool is a crypto exchange event where users stake a specific cryptocurrency to earn new tokens for free. You can withdraw your staked funds at any time without penalties or fees. These events have gained popularity due to their low-risk nature and potential for high yields.
The rewards don't come from thin air. New token creators provide the exchange with a reward pool in advance. Participants receive a share of these tokens. The primary goal is to generate attention for the new token and its upcoming listing.
How Launchpools Work
The mechanics are straightforward. You deposit supported cryptocurrencies into a dedicated pool for a fixed period. In return, you receive allocations of the new token based on your staked amount and duration.
Key advantages include:
- No lock-up periods
- Immediate withdrawal capability
- Transparent reward structures
- Lower risk compared to direct trading
Participating in Bybit Launchpool
Bybit frequently hosts launchpool events with various cryptocurrency options.
Platform Requirements:
- Level 1 KYC verification required
- Deposits must come from your funding account
- Standard limits: 2000 USDT and 5000 MNT
- VIP users earn 20% higher rewards
- Rewards distributed daily at 3:00 UTC
Website Participation:
- Click "Trade" in the header, select "Spot X," then choose "Pool"
- Select your preferred pool (USDT or MNT pools recommended)
- Click "Stake and Earn"
- Enter your staking amount and confirm
Mobile App Participation:
- From the home screen, tap "More"
- Select "Pool"
- Choose your preferred pool
- Enter staking amount and confirm
Explore more staking strategies
KuCoin Gempool Overview
KuCoin's Gempool launched in August 2024 and caters particularly to high-volume traders.
Platform Features:
- Identity verification required
- Deposits from trading account only
- No maximum deposit limits
- VIP bonuses: Levels 1-4: +10%, Levels 5-7: +15%, Levels 8-12: +20%
- Additional 10% bonus for completing quizzes
- Daily rewards at 16:00 UTC
Website Participation:
- Click "Earn" then select "GemPool"
- Choose USDT or KCS pool
- Click "Stake"
- Enter amount and confirm
- Complete quiz for bonus rewards
Mobile App Participation:
- Swipe menu icons left and tap "More"
- Scroll to "Bonus" section and select "GemPool"
- Choose your pool
- Enter staking amount
- Complete the qualification quiz
BingX Launchpool Features
BingX introduced its launchpool in July 2024 with hourly reward distributions.
Platform Specifications:
- Enhanced KYC verification required
- Deposits from fund account only
- Standard limits: 20,000 USDT and 0.3 BTC
- Special pools sometimes available for new users with enhanced yields
- Hourly reward distribution
Website Participation:
- Click "Spot" then select "Launchpool"
- Choose active pool
- Select USDT or BTC pool
- Click "Stake"
- Enter amount and submit
Mobile App Participation:
- Tap "Launchpool" on home screen
- Select active pool
- Choose staking currency
- Enter amount and submit
OKX Jumpstart Program
OKX's Jumpstart events are less frequent but typically offer superior yields compared to other platforms.
Program Details:
- Identity verification required
- Mobile app required for full functionality
- Deposits from main account only
- Standard limits: 600 OKB, 3.5 ETH, and 0.3 BTC
- Hourly reward distribution
Mobile App Participation:
- Navigate to "Earn" section
- Select "Jumpstart"
- Click pool banner
- Choose OKB, ETH, or BTC pool
- Enter staking amount and confirm
Performance Comparison Across Platforms
Actual returns vary based on multiple factors including staking amount, reward pool size, and token performance. Historical data shows annual percentage rates (APR) typically range from 8% to over 100%, with some exceptional cases reaching higher yields.
Diversification across multiple platforms and pools can help optimize overall returns while managing risk exposure.
Frequently Asked Questions
What is the minimum investment for launchpools?
Minimum investments vary by exchange and specific pool. Bybit typically has lower entry requirements (2000 USDT), while KuCoin's Gempool has no maximum limits, making it accessible for both small and large investors.
How are launchpool rewards taxed?
Rewards are generally treated as income at the time of receipt. The value is calculated based on the token's market price when distributed. Always consult with a tax professional regarding your specific jurisdiction's regulations.
Can I lose money in launchpools?
The staked amount remains yours and can be withdrawn anytime. However, the value of both staked assets and rewards may fluctuate due to market conditions. The primary risk is market volatility rather than fund loss.
How do I choose the best launchpool?
Consider factors like the project's fundamentals, reward size, pool duration, and historical performance. Diversifying across multiple pools and exchanges can help spread risk while maximizing potential returns.
What happens when a launchpool ends?
When the event concludes, rewards stop accumulating. You can withdraw your staked assets immediately. The newly earned tokens will appear in your spot wallet, ready for trading, holding, or further staking.
Are there geographical restrictions for participation?
Some platforms may restrict access based on jurisdiction. Always check your local regulations and exchange terms before participating. Most major exchanges serve global users with few restrictions.