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Binance often has activities to claim new coins for free, and the most common one is Launchpool. You only need to deposit the BNB or other designated tokens you hold into it to mine upcoming new coins for free. It sounds great, but how exactly do you operate it, and what are the returns? You can directly participate in Launchpool activities on the official Binance website. Downloading the official Binance APP makes operations more convenient, allowing you to join as soon as the activity starts. Apple phone users should first check the iOS installation guide to install the APP.
What is Binance Launchpool
Binance Launchpool is a "mining" platform launched by Binance. Whenever a new cryptocurrency project is about to be listed on Binance, Binance will open a Launchpool activity. By depositing designated tokens (usually BNB, FDUSD, or USDT) into the corresponding pools, you can earn free new token rewards proportionally.
This is not "mining" in the traditional sense; you don't need to buy mining machines, nor does it consume electricity. You only need to hold the designated tokens and stake them, so it's also called "staking mining."
The core advantage of Launchpool is acquiring new coins at zero cost. The BNB or USDT you deposit will be fully returned to you after the mining period ends, and the new coins you earn are extra profit. The only "cost" is that your tokens are locked during the mining period and cannot be used for other purposes.
Difference Between Launchpool and Launchpad
Many people confuse these two. Launchpad is for initial exchange offerings (IEOs), where you need to use BNB to purchase new tokens, which costs money. Launchpool is for mining, where you only need to stake tokens to get new tokens for free, without spending money to buy them.
Launchpool has a lower threshold than Launchpad, is simpler to participate in, and has no uncertain factors like lotteries.
How to Participate in Launchpool
Step 1: Follow Launchpool Announcements
Binance will publish new Launchpool activity information in official announcements, social media, and APP push notifications. Each activity will explain which new coin to mine, which tokens are supported for staking, how many days the mining lasts, and the total prize pool.
You can find ongoing and upcoming activities through the "Launchpool" entrance on the homepage of the Binance APP or under the "Earn" menu on the web version.
Step 2: Prepare Designated Tokens
Prepare the corresponding tokens according to the activity requirements. Most Launchpool activities support BNB and FDUSD pools, and sometimes there is a USDT pool.
The prize pool share for the BNB pool is usually larger (e.g., 85% to 90% of the total prize pool), while the FDUSD or USDT pool share is smaller (10% to 15%). Therefore, using BNB to participate usually yields more new coins.
If you don't have BNB yet, you can buy it in the spot market. If you don't want to buy BNB, you can also participate using FDUSD or USDT.
Step 3: Enter the Launchpool Page to Stake
After the activity starts, enter the Launchpool page, select the pool you want to participate in (BNB pool, FDUSD pool, etc.), enter the amount you want to stake, and click the "Stake" button.
The operation is very simple, similar to buying financial products. After successful staking, the system will immediately start calculating new coin rewards based on your share.
Step 4: Claim Daily or Accumulate Automatically
Mining rewards are calculated hourly. You can choose to manually claim the produced new coins, or let them automatically accumulate until mining ends. It is recommended to let them accumulate automatically to save the trouble of claiming them every day.
Step 5: Retrieve Principal After Mining Ends
After the mining activity ends (usually lasting 5 to 10 days), the BNB or other tokens you staked will automatically return to your spot account. The new coins you mined will also arrive. When the new coin is officially listed for trading, you can choose to hold or sell.
How Are Returns Calculated
Launchpool returns depend on three factors: the total prize pool, the amount you stake, and the total amount staked by all participants.
Your hourly return = Total prize pool hourly output × (Your staked amount ÷ Total staked amount in the pool)
For example: Suppose a Launchpool activity's BNB pool has a total prize pool of 10 million new coins, and the mining time is 10 days (240 hours). The hourly output is about 41,667 new coins.
Assuming the BNB pool has a total of 5 million BNB staked, and you staked 100 BNB. Your hourly return = 41667 × (100 ÷ 5000000) = about 0.83 new coins. Over 10 days, you can mine a total of about 200 new coins.
If the new coin's price is 1 USDT after listing, your return is 200 USDT. Calculated on 100 BNB (assuming each is 600 USDT), your principal is about 60,000 USDT, earning 200 USDT in 10 days, with an annualized return rate of about 12%.
Of course, the actual situation will change based on the number of participants, and the price of the new coin after listing is also uncertain.
Strategies for Participating in Launchpool
Participate with BNB or Stablecoins
If you already hold BNB and are optimistic about BNB's long-term trend, participating with BNB is the most cost-effective, because the BNB pool has the largest prize pool share.
If you do not want to bear the risk of BNB price fluctuations, you can participate with FDUSD or USDT. Although the prize pool share is small, the value of your principal will not shrink due to token price fluctuations.
When is the Best Time to Stake
It is best to stake right when the activity starts. Many people will wait a few days to see before participating, which means early participants can share more new coins. As more people participate, your share gets smaller and smaller.
Some savvy traders will buy BNB and get ready before the activity starts, and stake immediately when the activity begins.
When to Sell Mined New Coins
This is a matter of opinion. The price fluctuation is usually very large when a new coin is first listed. Some people choose to sell at the very first moment of listing to lock in profits; others choose to hold for a period and wait for the price to rise before selling.
If you don't understand or aren't optimistic about the new project, it is recommended to sell early and convert to stablecoins. If you think the project has potential after research, you can hold a portion.
Should I Buy BNB During the Activity
Many people will buy BNB to participate in mining after a Launchpool activity is announced, causing the BNB price to rise. After the activity ends, selling BNB might cause the price to fall back. If you buy BNB just to participate in the activity, pay attention to the impact of BNB price changes on your total return.
Risks of Launchpool
Opportunity Cost
Your staked tokens cannot be used for trading or other investments during the mining period. You might miss out if the market has better trading opportunities. However, Launchpool supports unstaking at any time, so you can exit early in an emergency.
Uncertainty of New Coin Prices
You don't know how much the mined new coins are worth before they are listed. Some new coins perform well after listing, with prices rising steadily; some might plummet upon listing. Historically, the quality of Binance Launchpool projects has been generally good, but there's no guarantee that every single one will make money.
BNB Price Fluctuations
If you participate with BNB, you need to bear the risk of BNB price fluctuations. In case BNB plunges during the mining period, the returns from the new coins you mined might not be enough to cover the drop in BNB.
Operational Delays in Staking and Unstaking
Although Launchpool supports unstaking at any time, it might take a little time from cancellation to the funds returning to your account. In extreme market conditions, this delay might affect your operations.
Preparation Work Before Participating
Ensure your Binance account has completed identity verification (KYC), as unverified accounts may not be able to participate in Launchpool. Prepare the tokens you want to stake, ensuring they are already in your spot account before the activity starts. Follow Binance's announcement channels to get information on new activities in a timely manner. Understand what the upcoming new project does and evaluate its value.
Frequently Asked Questions
Does Launchpool mining cost money?
No. You only need to stake the designated tokens to get free new coin rewards. The staked tokens will be fully returned to you after the activity ends. The only "cost" is that your tokens cannot be used for other purposes during this period.
Can I withdraw early after staking?
Yes. Launchpool supports unstaking at any time, and your tokens will be returned to your spot account. However, after withdrawal, no more new coins will be produced. If you restake, you need to operate again.
How often does Launchpool usually occur?
There is no fixed frequency; it depends on the pace at which Binance lists new coins. Sometimes there are several times a month, and sometimes there might be a longer gap. In recent years, with the development of the industry, the frequency has been relatively high.
Can I participate in multiple pools at the same time?
Yes. If you have both BNB and FDUSD, you can stake them separately into different pools. However, the same token cannot be placed in multiple pools at the same time.
When can the mined new coins be traded?
Usually, within a day or two after the Launchpool mining activity ends, the new coins will be officially listed for trading on the Binance spot market. The specific time is subject to Binance's announcement.