What is the best IDO Launchpad?
Disclaimer: none of this is financial advice- please DYOR. All the numbers are historical and hypothetical. We do not guarantee future profits.
In our previous article “Revolutionizing DAO-powered NFT communities” we’ve touched on why we think Trustpad might be the easiest launchpad to start investing in our future community vault. However, it is still unclear if this is actually the best choice in terms of Potential Rewards divided by the Number of Tokens Staked.
That is why we will try to break down the top 15 launchpads based on volume (according to https://cryptorank.io) and see which one is the best.
Methodology
As a screening group, we take the top 15 launchpads in terms of the token market cap (As of January 8, 2022). These are:
BSCPad, DAO Maker, Polkastarter, Red Kite, GameFI, PAID Network, Trustpad, Seedify, Poolz, Oxbull.Tech, Solanium, DuckSTARTER, AcceleRaytor, BSCStation and Gamestarter
First, we screen them based on the Current Average ROI of each project. We want to exclude all the companies with Current AVG ROI in the bottom 25% quartile of normal distribution. Poolz, BSCStation, Duckstarter and Gamestarter are out.
Second, we eliminate all the launchpads without the Allocation for max tiers data from the consideration.
Additional factors
Another important factor to consider while selecting a launchpad is a staking APY (the percentage rate that is paid for depositing or locking our tokens on the launchpad) and access to private rounds for maximum tiers.
Since many projects are either vague about their APYs or have a dynamic one, we’ve decided to ignore this variable. As for the private rounds — since they are accessible via all of the selected launchpads — this factor has been disregarded.
Formula
Since we eliminated all the outliers let’s calculate what will be the monthly return on the invested capital for each of the launchpads. We will use the following formula:
Capital ROI per month = Average return on the project * Allocation for max tier * Number of projects per 30 days / (Total launchpad tokens staked+Allocation Amount * Monthly Number of projects)
We want to have the maximum information from each of the launchpads — and to make it a level playing field we consider another metric — the frequency of the projects on each launchpad or how many projects a month are published there.
The range of the current average ROIs is from 26% to 133% while the range of all-time high returns is from 114% to 721% across multiple launchpads.
GameFi is the clear winner here within both categories.
Additionally, we’ve determined token appreciation potential as an important factor while selecting a launchpad. But the main question is what is the best metric to check if the token will increase in value. The answer lies in the financial theory. As we know, the historical performance of a particular stock or token in this case is a huge indicator of future success. At the same time, all the tokens vary greatly in risk.
That is why we decided to go with the Sharpe ratio as the main indicator of future success. The Sharpe ratio was developed by Nobel laureate William F. Sharpe and is used to help investors understand the return of an investment compared to its risk. The ratio is the average return earned per unit of volatility or total risk. Volatility is a measure of the price fluctuations of an asset or portfolio.
We took the average Sharpe ratio for 2 periods: 3 months and 6 months. GameFi and TrustPad have the highest Sharpe ratio out of the whole proxy group meaning that their tokens are the best bet from the return/risk perspective.
Summary of the results
Taking into account all the factors — we believe that it might be a great idea to start the IDO journey of our community with at least 2 launchpads: GameFi and TrustPad. GameFi is a very promising IGO platform that yields super high returns while Trustpad is an established multi-chain launchpad and is a safer bet.
Let’s calculate how much we will earn by investing the community vault in GameFi IDOs. The numbers are quite impressive, to say the least:
AVG ROI per month per holder: $121.27 or 82.00%
AVG ATH ROI per month per holder: $703.28 or 475.57%
- ROI based on the historical GameFi launchpad data since September 1, 2021
- Disregarding vesting
By buying a Generous Robot NFT for approximately 150 USDT, investors can potentially get from 121.27 to 703.28 USDT a month!
Eventually, it is up to our community to decide what launchpad they want to go with. We just provide facts that may help them to pick the best option.
For detailed information on the estimations — please check our google spreadsheet. If you have any questions — reach out to discord or email generousrobots@gmail.com.
