🔑Unlock Crypto Launchpad: Key Terms and Definitions Explained

Navigating the world of crypto launchpads involves a lot of unique terminology, which can be confusing for both newbies and seasoned pros. Understanding these terms is key to mastering ICOs, IDOs, and other fundraising models.

📘The Unicorn Hunter Launchpad glossary provides clear and concise definitions for all the crucial terms you’ll encounter. It’s always at your fingertips and regularly updated! Can’t find what you’re looking for? Use Ctrl + F or Command + F to locate the term quickly!

GLOSSARY

A

• Airdrop: Free token distribution to users or project participants.

• Allocation: Assigned quantity of tokens or funds for participants in a token sale.

• AMA (Ask Me Anything): Live Q&A session where project team members respond to community questions.

• AML (Anti-Money Laundering): Measures and rules to prevent financial crimes and ensure legal compliance in the crypto realm.

• APR (Annual Percentage Rate): Yearly rate of return on staked or invested assets.

• APY (Annual Percentage Yield): Annual rate of return, including compound interest, from staking or investments.

B

• BEP-20: Token standard for Binance Smart Chain.

• Blockchain: A distributed digital ledger that records and verifies transactions across multiple computers.

• Blockchain Explorer: A tool to view transactions, addresses, and blocks on a blockchain.

• Bridge: A protocol that facilitates communication and token transfers between separate blockchains.

• Burn Mechanism: The process of permanently removing tokens from circulation to decrease the total supply.

C

• CEX (Centralized Exchange): A platform run by a central entity where users trade cryptocurrencies.

• Circulating Supply: Number of tokens currently available and traded in the market.

• Compounding: The practice of reinvesting earnings to earn additional returns over time.

• Cross-chain: Capability for different blockchains to interact and share information.

• Crowdfunding: Collecting funds from multiple people to support a project or initiative.

D

• DAO (Decentralized Autonomous Organization): An organization managed by smart contracts and decentralized decision-making.

• DeFi (Decentralized Finance): Financial services utilizing blockchain technology, eliminating traditional intermediaries.

• DEX (Decentralized Exchange): A trading platform without a central authority, enabling direct peer-to-peer transactions.

• Dividend Token: A token that provides holders with dividends from the issuing entity's profits.

E

• ERC-20: Token standard used on the Ethereum blockchain.

• Equity Token: A token that signifies ownership in a company, akin to traditional stock shares.

• EVM (Ethereum Virtual Machine): The environment for executing smart contracts on the Ethereum blockchain, supporting decentralized applications.

F

• FCFS (First Come, First Served): A system where the earliest participants get priority in token allocations or sales.

• Fork: A divergence in a blockchain that results in two distinct versions of the chain.

• Fractional Ownership: Owning a share of an asset, like property or art, through tokenization.

G

• Gas Fees: Charges paid to miners or validators for processing transactions on a blockchain.

• Gasless Transactions: Transactions where users do not incur gas fees.

• Governance Token: A token that allows holders to vote on decisions and changes related to a project.

• Grace Period: An extension after a deadline during which actions can still be taken or penalties are not enforced, providing time for adjustments.

H

• Hard Cap: The maximum fund-raising target set by a project during a token sale.

• Hash Rate: The measure of computational power in a blockchain network, usually expressed as hashes per second.

I

• ICO (Initial Coin Offering): A method of raising funds by selling new cryptocurrency tokens to early investors.

• IDO (Initial DEX Offering): A fundraising approach where new cryptocurrencies sell tokens through a decentralized platform.

• IEO (Initial Exchange Offering): A fundraising method where new cryptocurrencies sell tokens through a centralized exchange.

• IMC (Initial Market Capitalization): The total market value of a project's tokens at launch, derived from multiplying the token price by the total supply.

• IMC excl. liq.: Initial Market Capitalization excluding liquidity, focusing on the value of tokens not used for liquidity pools.

• Interoperability: The capacity for different blockchain networks to interact and function together.

• Investors: Individuals or entities that provide capital to projects in exchange for tokens or equity.

K

• KOL (Key Opinion Leader): Influential individuals whose endorsements enhance project visibility and credibility.

• KOL Round: A fundraising stage involving KOLs to generate interest and attract investors.

• KYC (Know Your Customer): A process for verifying the identity of participants in token sales to ensure regulatory compliance.

L

• Layer 1: The foundational layer of a blockchain, providing core services and security.

• Layer 2: Technologies built atop Layer 1 blockchains to enhance scalability and efficiency.

• Learn-to-Earn (L2E): A program where participants earn tokens or rewards by engaging in educational activities.

• Liquidity Mining: The act of providing liquidity to decentralized exchanges in exchange for rewards.

• Liquidity Pool: A collection of tokens held in a smart contract to enable trading on a decentralized exchange.

• Lock-up Period: A time frame during which tokens cannot be sold or transferred.

M

• Main Sale: The primary phase of a token sale where most tokens are sold.

• Market Cap: The total valuation of a cryptocurrency, calculated by multiplying its price by the circulating supply.

• Mint: The creation of new tokens.

N

• Node: A computer that participates in validating and relaying transactions within a blockchain network.

O

• Off-chain: Transactions or data management occurring outside the blockchain.

• On-chain: Transactions or data management that occur directly on the blockchain.

P

• Partnership: Collaborative efforts between projects or companies to achieve shared objectives.

• Presale: An early token sale stage where tokens are offered at a discount before the main sale.

• Private Sale: A token sale phase restricted to a select group of investors.

• Public Sale: A stage in a token sale where tokens are available to the general public, typically following private and presale rounds.

R

• Refund Policy: Conditions under which users can request and receive a reimbursement for their investment or purchase.

• Roadmap: A strategic plan detailing the future objectives and key milestones of a project.

• Rollup: A Layer 2 scaling technique that consolidates multiple transactions into one to improve efficiency.

• Rug Pull: A fraudulent scheme where developers abandon a project and flee with investors' money.

• RWA (Real-World Assets): Tangible assets like property or commodities that are represented as tokens on the blockchain for easier trading and fractional ownership.

S

• Scalability: The capability of a blockchain to manage an increasing volume of transactions.

• Scam: Deceptive activities aimed at misleading investors and illegally acquiring funds.

• Security Audit: An in-depth review of a project's code and systems to ensure they are secure and dependable.

• Seed Round: The initial stage of fundraising for a project, usually involving a small group of early investors.

• Smart Contract: An automated contract where the terms are encoded directly into the blockchain.

• Soft Cap: The minimum fundraising target a project needs to reach to move forward with development.

• Staking: The act of holding tokens in a network to support its operations and earn rewards.

T

• TGE (Token Generation Event): The occasion when new tokens are created and distributed to participants.

• Token Sale: The process of selling tokens to gather funds for a project.

• Token Swap: The conversion of one type of token into another.

• Tokenomics: The study of a project's token's economic model and distribution strategy.

• Total Supply: The maximum number of tokens that will ever be created for a specific cryptocurrency.

• TVL (Total Value Locked): The aggregate value of assets staked or held in a DeFi protocol, reflecting its popularity and reliability.

U

• Utility Token: A token that grants access to products or services within a project's ecosystem.

V

• Validator: An entity in a blockchain network responsible for validating transactions and maintaining the network.

• VC (Venture Capital): Investment funds provided by venture capitalists to startups and high-growth potential businesses.

• Vesting Schedule: A timeline that specifies when and how tokens will be distributed to participants or team members.

W

• Web3: The evolving version of the internet, centered around decentralized applications and blockchain technologies.

• Whitelist: A roster of approved participants eligible to take part in a token sale.

We aim for this glossary to be a key resource for anyone seeking to understand the nuances of crypto launchpads. Mastering these terms will help you confidently navigate the Launchpad ecosystem and make informed choices regarding your investments and blockchain project participation.

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