How Do Launchpads Help with “Price Discovery” for New Tokens?
Launchpads facilitate price discovery by creating an initial, controlled market for the token. The IEO price provides a starting point, and the immediate listing on the exchange post-sale exposes the token to a large, active user base.
This rapid exposure allows the market's collective demand and supply forces to quickly determine a fair secondary market price. The initial buzz is key.
Glossar
Price Discovery
Revelation ⎊ Price discovery within cryptocurrency markets, particularly for derivatives, represents a dynamic process where consensus on an asset’s intrinsic value emerges through continuous trading and order flow interaction.
Demand and Supply
Equilibrium ⎊ ⎊ Demand and supply, within cryptocurrency markets and derivative instruments, establishes a dynamic equilibrium price reflecting collective valuation and risk appetite.