Centralized vs. Decentralized Launchpads: Which Model Will Win in 2025?

The Web3 revolution is redefining how new projects raise capital, distribute tokens, and build communities. At the heart of this evolution lies a critical component: crypto launchpads. These platforms serve as gateways for early-stage projects to access funding and for investors to discover promising new tokens. But as the industry matures, one fundamental question has emerged—which model is more effective in 2025: centralized or decentralized launchpads?

To answer that, we need to explore how both models operate, their strengths and trade-offs, and the emerging trends that may shape the future of token launches.

What Are Crypto Launchpads?

Crypto launchpads are platforms that help blockchain projects raise funds through token sales, often at early stages like seed, private, or public rounds. These platforms vet projects, provide marketing support, and often enforce certain investment protections. Projects in return gain access to liquidity, community exposure, and streamlined fundraising.

Launchpads generally fall into two categories:

• Centralized Launchpads (CEX-based): Operated by centralized exchanges like Binance, KuCoin, or Gate.io.

• Decentralized Launchpads (DEX-based): Operated via smart contracts and governed by communities, such as DAO Maker, Polkastarter, or TrustSwap.

Centralized Launchpads: How They Work

Centralized launchpads are operated by crypto exchanges that curate and manage token sales directly on their platforms. These platforms typically require users to undergo a full Know Your Customer (KYC) process to ensure regulatory compliance and user accountability. Once verified, users must usually hold a minimum amount of the exchange’s native token—such as BNB for Binance or KCS for KuCoin—to become eligible for participation. Depending on the launchpad, the token allocation may follow a lottery-based model, a tiered staking system, or a first-come, first-served basis.

Centralized launchpads often provide an end-to-end solution for both users and projects. Projects benefit from the trust, liquidity, and exposure that comes with launching on a major exchange, while users gain access to vetted opportunities and often immediate listing post-sale.

Examples of centralized launchpads:

• Binance Launchpad – The gold standard for high-profile launches.

• KuCoin Spotlight – Known for its community-driven project curation.

• Gate.io Startup – Features regular sales with broad participation.

• OKX Jumpstart – Offers innovative staking-based allocation models.

Key features:

• Strict vetting process, often including code audits and founder background checks.

• High security and compliance, appealing to institutional investors.

• Built-in exchange user base ensures project visibility and initial liquidity.

• Custodial token distribution handled by the exchange itself, ensuring delivery.

Decentralized Launchpads: How They Work

Decentralized launchpads operate via blockchain-based smart contracts, removing the need for intermediaries and enabling permissionless participation. These platforms typically run on networks like Ethereum, BNB Chain, or Polkadot. To participate, users connect their Web3 wallets (e.g., MetaMask or WalletConnect) and interact directly with smart contracts governing the token sale process.

Instead of centralized curation, decentralized launchpads often rely on DAO governance—where token holders vote on whether a project should be approved. This community-based vetting brings a layer of democratic decision-making, though it may vary in effectiveness depending on the quality of DAO engagement.

Participation mechanisms also differ: users may be required to stake the platform’s native tokens to earn allocation rights, or they might enter lotteries depending on the number of tokens they hold. Transparency, decentralization, and early-stage access are key selling points for these platforms.

Examples of decentralized launchpads:

• Polkastarter – Cross-chain compatibility and curated project pools.

• DAO Maker – Pioneered the “Strong Holder Offering” (SHO) concept.

• TrustSwap – Emphasizes smart lockups and long-term project sustainability.

• BullPerks – Integrates launchpad and VC model with multichain support.

Key features:

• Permissionless project listing (with varying levels of community screening).

• Non-custodial participation ensures users control their private keys.

• DAO-led or community-driven governance for project approvals.

• Allocation via tier-based staking, time-weighted participation, or random selection.

Advantages of Decentralized Launchpads

1. Permissionless Access and Global Participation

One of the most significant benefits of decentralized launchpads is their inclusivity. Anyone with a Web3 wallet and internet connection can access these platforms, regardless of geography or socio-economic background. There are no centralized intermediaries enforcing geographic restrictions or KYC barriers—making them ideal for users in regions where access to centralized exchanges is limited or restricted. This inclusivity is critical to Web3’s goal of financial democratization.

2. Transparency and Community Governance

Every aspect of a decentralized launchpad—from project selection to token distribution—is governed by transparent, immutable smart contracts. Community members can review code, audit fundraising mechanics, and vote on project approvals via DAO mechanisms. This level of openness builds trust among participants, as there is minimal risk of opaque decision-making or centralized manipulation.

3. Innovation and Early Access

Decentralized launchpads often serve as the first point of exposure for bold, experimental ideas in DeFi, GameFi, SocialFi, and AI. Projects that may be deemed “too risky” for centralized exchanges can find community support through DAOs and grassroots backers. This gives early supporters the chance to get in at the ground floor and potentially benefit from significant returns if the project succeeds.

4. Lower Entry Barriers for Projects

For builders, decentralized launchpads offer a more accessible route to funding. There’s no need to go through rigorous institutional vetting, provide legal backing, or meet exchange listing fees. As long as the community sees value in the project, developers can gain traction, funds, and momentum—making decentralized platforms a fertile ground for innovation and disruption.

Disadvantages of Centralized Launchpads

1. Centralized Custody and Control

Centralized launchpads require users to deposit funds into custodial wallets controlled by the exchange. This contradicts Web3’s core principle of self-custody and introduces a single point of failure. In the event of a platform hack, mismanagement, or regulatory seizure, user funds may be compromised or inaccessible.

2. Regulatory Overhang

Due to their need to comply with global financial laws, centralized launchpads often block users from certain countries or regions. Even participants in supported regions are subject to stringent KYC/AML procedures, which may include government-issued ID submission, proof of address, and income verification. This limits accessibility and raises privacy concerns.

3. High Entry Costs for Projects

For projects, getting listed on a top-tier centralized launchpad is often expensive. Apart from meeting technical and legal requirements, teams may have to pay hefty fees, allocate large token percentages, or engage in extensive negotiations. These costs can deter smaller teams, slowing innovation and favoring well-funded projects backed by venture capital.

Disadvantages of Decentralized Launchpads

1. Scams and Rug Pulls

While decentralization offers openness, it also lowers the barrier for malicious actors. Some projects exploit the lack of centralized scrutiny to launch fraudulent campaigns, disappearing with investor funds after raising capital—a common scenario known as a “rug pull.” While communities and DAOs are developing vetting mechanisms, they are not yet as reliable or enforceable as centralized reviews.

2. Complex User Experience

Interacting with decentralized launchpads requires a good understanding of wallet setups, smart contract interactions, and gas fees. New users unfamiliar with blockchain transactions may find the process overwhelming or make critical mistakes—like sending funds to the wrong address or missing gas optimizations. Poor UX remains a significant adoption hurdle.

3. Lack of Institutional Trust

Institutions and traditional investors typically shy away from decentralized platforms due to the absence of regulatory frameworks and accountability. The lack of legally binding terms or dispute resolution mechanisms creates uncertainty, making large-scale institutional funding difficult to attract.

Major Trends Shaping Launchpads in 2025

1. Hybrid Launchpad Models

In 2025, the lines between centralized and decentralized launchpads are increasingly blurred. Many emerging platforms are exploring hybrid models that integrate both KYC compliance and decentralized participation mechanics. This allows platforms to offer regulatory-friendly environments for investors and institutions while preserving the decentralization ethos that early-stage Web3 supporters value. Participants may verify identity through KYC once but still retain self-custody via smart contract-based interactions. This convergence allows for a smoother onboarding of Web2 users and bridges the trust gap for legacy financial institutions.

2. AI-Powered Vetting

Artificial intelligence is playing a critical role in transforming how launchpads assess projects. AI algorithms now analyze smart contract code for vulnerabilities, conduct founder background checks across public data, evaluate tokenomics sustainability, and even monitor social sentiment across X (formerly Twitter), Discord, and Reddit. This automated vetting layer helps mitigate human bias and can flag suspicious patterns before a project is approved for launch. As the technology evolves, AI is increasingly viewed not just as an optimization tool but as a core part of launchpad infrastructure.

3. Launchpads as Full-Fledged Incubators

Launchpads in 2025 have evolved beyond simple fundraising mechanisms. The most successful platforms now act as Web3 startup incubators, offering a comprehensive suite of services: tokenomics consulting, smart contract auditing, community-building support, marketing campaigns, exchange listing guidance, and liquidity provisioning. This “Launchpad-as-a-Service” model enables startups to go from idea to market with all critical infrastructure in place. By doing more than just hosting token sales, launchpads are becoming strategic partners in long-term project success.

4. DAO-Led Due Diligence

Community governance in decentralized launchpads is maturing. DAOs are now forming specialized vetting committees made up of token holders, auditors, and developers who perform deep due diligence before projects go to vote. Some platforms offer bounty-based research systems, where contributors are rewarded for uncovering risks, auditing smart contracts, or validating business models. This collaborative intelligence model not only decentralizes control but increases the transparency and trustworthiness of the project pipeline.

5. Real-World Asset (RWA) Launches

The rise of tokenized real-world assets is pushing launchpads into new territory. Projects involving physical assets like real estate, commodities, carbon credits, or luxury art now require regulatory safeguards. Centralized launchpads—with their legal frameworks and compliance infrastructure—are better equipped to handle these asset classes. However, decentralized platforms are finding ways to support community-driven RWA launches by integrating third-party legal oracles and hybrid compliance tools. The convergence of the physical and digital asset worlds is giving rise to a new category of launchpads that prioritize both community and compliance.

Who’s Winning in 2025?

In the evolving world of crypto fundraising, there is no single winner between centralized and decentralized launchpads. Instead, both models are flourishing—each dominating in different niches, serving diverse participant needs, and coexisting in a mutually beneficial ecosystem.

Centralized Launchpads

These platforms continue to lead when it comes to institutional-grade token offerings. They provide a high-trust environment with built-in legal protections, custodial token distribution, and fast liquidity on the parent exchange. Centralized launchpads are particularly effective for projects in high-compliance verticals like security token offerings (STOs), tokenized equities, and real-world assets. Their ability to scale campaigns quickly, onboard fiat users, and integrate with traditional financial systems gives them a decisive edge in regulated environments.

Why they’re thriving:

• Legal and regulatory clarity

• Access to fiat ramps and CEX liquidity

• Immediate exposure to millions of existing exchange users

• Strong security infrastructure and insurance options

Decentralized Launchpads

Meanwhile, decentralized launchpads are the go-to platforms for community-first projects, especially those focused on DeFi, gaming, metaverse, and experimental AI/Web3 integrations. These platforms emphasize permissionless access, open-source ethos, and fair token distribution. Many smaller or grassroots projects prefer decentralized launchpads because they can build loyal communities from day one and retain control of their smart contracts, treasury, and vision.

Why they’re thriving:

• Global participation without KYC

• DAO-based project approvals and governance

• Transparent token allocation via staking, lotteries, or bonding

• Rapid experimentation with novel fundraising models