Binance Launchpad’s latest project, Space ID, has received over USD 2.8 billion in BNB commitments from 99,000 holders over a 48-hour period.
However, the project’s hard cap for funding is only USD 2.5 million. Space ID is a Web3 domain management platform that allows users to exchange, register, and manage crypto-based domain names. The Space ID platform’s ID tokens can serve as a governance token on the platform. The ultimate distribution of tokens will be based on the number of BNB commitments relative to the total number of participating holders.
Binance Launchpad is known for using a lottery system for its token distribution, which generates massive hype and interest. Once a new initial exchange offer (IEO) is announced, a snapshot is taken of potential investors’ BNB holdings over a set period that varies according to the sale. After the BNB holding period, a claim ticket button will appear for 24 hours to users who need to confirm their lottery tickets, after which the lottery will start, and the winners will automatically become participants in the token offering in exchange for BNB tokens.
Previous Binance launchpads have increased by several multiples for investors, which is why they continue to be a lucrative and hyped bet for traders looking to get allocations to tokens of new projects. For example, a December launchpad for Hooked Protocol’s HOOK tokens raised USD 9 million in BNB commitments from traders, offering its tokens at just 10 cents at the time. HOOK trades for USD 2.5 as of Wednesday, yielding a 2,300% return for early participants.