What Is Launch Coin on Believe (LaunchCoin)?

The world of cryptocurrency is constantly evolving, with new platforms and narratives emerging frequently. 

One such development that has captured significant attention is LAUNCHCOIN, particularly its connection to the Believe platform. 

While often speculated as the official coin of Believe, LAUNCHCOIN actually has a distinct history, rooted in its former identity as the PASTERNAK coin, initially launched through Clout.

This article delves into the origins of LAUNCHCOIN, its rebranding, the concept of "Internet Capital Markets" that it helped pioneer, and the inherent risks associated with such platforms.

What Is Launch Coin on Believe (LaunchCoin)?

Originally known as the PASTERNAK coin, LAUNCHCOIN gained prominence after the rebranding of the Clout platform to Believe. 

Following this announcement, Believe took a significant step by rebranding all official token logos of the PASTERNAK coin, transforming them into what is now known as LAUNCHCOIN.

This rebranding sparked intense speculation among crypto users. Given PASTERNAK coin's close ties and rich history with Ben Pasternak, the founder of Clout (now Believe), many users heavily speculated that LAUNCHCOIN was destined to become, or already was, the official coin of the Believe platform. 

This fervent speculation had a dramatic effect: LAUNCHCOIN experienced a remarkable surge, climbing from a market capitalization of $10 million on May 12 to over $240 million on May 14.

Also Read: How to Avoid Crypto Scams

Starting the Internet Capital Markets Meta of LAUNCHCOIN

The method by which PASTERNAK (now LAUNCHCOIN) was launched introduced a groundbreaking concept: "Internet Capital Markets." This innovative token launch method is designed to be remarkably accessible, requiring no technical expertise or even a crypto wallet. 

It empowers creators with unique ideas to tokenize their concepts with a simple X (formerly Twitter) reply.

This simplicity fosters a new paradigm where virtually anyone with a compelling idea can raise capital for that idea through the internet. This democratized approach to capital raising has opened up new avenues for innovation and community-driven projects within the crypto space.

Important Disclaimer: Navigating Speculation vs. Reality

While the "Internet Capital Markets" narrative is gaining traction, it is crucial to note the clear disclaimers issued by the Believe platform. Believe explicitly states that coins listed on their platform "is not a security, must never represent equity." 

These disclaimers directly contradict the core tenets of the "Internet Capital Markets" narrative, which implies fundraising for equity-like ventures.

This discrepancy highlights a critical point: the market's heavy speculation about LAUNCHCOIN official status and the "Internet Capital Markets" concept goes against Believe's own platform guidelines. 

Users must be aware that this area is highly speculative and carries inherent risks due to this fundamental divergence.

Risks Associated with the Believe Platform

Despite Believe's rising popularity, users must be acutely aware of several significant risks inherent to the platform and the types of tokens launched there:

Rug Pulls and Scams

Memecoins, which constitute a significant portion of tokens launched on Believe, are notoriously speculative and highly susceptible to "rug pulls" and scams. 

Most memecoins lack intrinsic value and are prone to crashing in value once market interest or narrative wanes. While not exclusive to Believe, this is a paramount risk given the platform's focus.

Dealing With Spam

It remains unclear how Believe will effectively manage the massive influx of token launch requests via X replies. 

Given the current processing method based on X replies, there's a lack of clear safeguards against users spamming Believe's Launchcoin X account, which could potentially overload the system. 

As an example, there are currently over 5,000 replies to Launchcoin's X post, though this pales in comparison to the over 20,000 daily token launches seen on platforms like Pump.fun. This raises concerns about scalability and system stability.

Token Metadata Mutability

According to Rugcheck.xyz, Believe currently permits coin creators to alter and change token metadata after launch. This means creators can modify crucial identifying characteristics of a token even after it's live, including its name/ticker symbol, associated URL, and token profile picture. 

While this feature could be used for legitimate rebranding efforts (like the PASTERNAK to LAUNCHCOIN transition), it also opens the door to malicious activities. 

Coin creators could potentially deceive users or insert phishing links into their tokens after they've gained traction. This vulnerability allows for attacks where token creators rename their tokens post-launch to impersonate or mimic other well-known crypto projects, leading to potential scams and loss of funds for unsuspecting investors.

Also Read: Truth (TRUU) Coin Tokenomics: Full Details

Conclusion

Believe currently allows coin creators to change and alter token metadata, even after its launch. This feature carries both potential benefits for rebranding and significant risks for malicious activities. 

Investing in tokens launched on platforms like Believe carries extremely high risks due to their speculative nature, susceptibility to scams, and the platform's disclaimers. 

It is crucial to conduct extensive independent research (DYOR) and understand all associated risks before considering any investment.

FAQ

What is LAUNCHCOIN on Believe?

LAUNCHCOIN is the rebranded version of the formerly known PASTERNAK coin, which was initially launched through the Clout platform (now Believe). It is not an official coin of Believe, but its rebranding fueled speculation due to its founder's ties to Ben Pasternak.

Is LAUNCHCOIN the official coin of the Believe platform?

LAUNCHCOIN is not officially the coin of the Believe platform. While there was heavy speculation due to its rebranding and historical ties, Believe explicitly states that coins listed on their platform "is not a security, must never represent equity."

What is the "Internet Capital Markets" concept related to LAUNCHCOIN?

The "Internet Capital Markets" is a concept that LAUNCHCOIN helped start. It refers to a token launch method requiring no technical expertise, allowing creators to tokenize their ideas and raise capital simply through an X (formerly Twitter) reply.