Launchpool vs. Airdrop for holders: what's the difference?

Launchpool and Airdrop are quite similar concepts for holders, let's look at what they have in common and what the difference is between them.

Launchpool

• This is a mechanism that allows users to "farm" new tokens by staking (freezing) other assets.
• Typically used on exchanges (e.g. Binance Launchpool).
• The more tokens staked, the more new tokens you receive.
• The duration of the campaign can be several weeks or months.
• Pros: No need to buy a new asset, just stake your funds.
• Cons: Liquidity may be blocked for a certain period.

Airdrop for holders

• This is a free token distribution to owners of certain assets (for example, if you hold token A, you get token B).
• The reward depends on the number of tokens you already have.
• Often carried out by projects to promote the token or reward loyal investors.
• Pros: You don't need to do anything, just have the asset in your wallet.
• Cons: The airdrop can be small, and there is also a risk of the value of the distributed tokens decreasing after listing.

The main difference:

• Launchpool is an active process (you have to stake assets).
• Airdrop is passive (you just get a bonus for holding).

Which is better? It depends on the strategy: if you are ready to stake assets for a reward – Launchpool, if you just want to get a bonus – Airdrop.

Registrations on exchanges where Launchpool vs. Airdrop are most common for holders:

Binance Registrations

OKX Registrations

Bybit Registrations

Gate.io Registrations