Token Gating Products Hinders Growth; Open-Access Platforms like CoinTerminal will Lead the Market

As cryptocurrency markets go green with prices rising across the board, fundraising activity in the sector is also seeing an uptick.

“The fundraising market has entered a bullish phase, driven by a shifting regulatory landscape in the United States and a broader change in how crypto assets are positioned within the global financial system,” noted digital asset data provider CryptoRank in its Q2 2025 report.

So, amidst this positive momentum, how does a regular individual find the juicy opportunities early on? Launchpads are what offer investors tools to explore innovative projects, and if interested, invest in them in the simplest way.

The Flawed Token Gating Model Fails Investors

While offering a way to invest in legitimate projects safely at discounted prices, many launchpads implement token gating to grant users early access to new tokens before they are listed and available to the broader public.

Under this structured model, interested users must commit their funds in advance. Here, users must hold specific tokens in order to be eligible to participate in a pre-sale or gain access to any special services, content, or benefits. The majority of the time, the token that one must first acquire is the platform’s own native token.

Additionally, the amount of the token the participant is holding or staking determines their allocation rights.

With this approach, the launchpad essentially prioritizes a handful of investors while blocking access for those not holding tokens, making it a flawed utility model. Crypto projects are forced to create utilities, and this is how we end up with token gating when it shouldn’t be the case, as it comes with serious drawbacks.

This model creates a barrier to entry, excluding smaller investors, while a few big holders capture most of the allocations. By capping the pool of eligible participants to those willing to commit significant capital, it limits network effects and constrains the project’s growth.

Not only does this model limit a project’s capabilities, but it also restricts its own revenue capability, as earnings come from a narrow group of contributors rather than from broader, ongoing participation.

Open Access is the True Way to Sustained Growth

A better alternative to the restricted and chaotic subscription model is open access to all. In alignment with the open, decentralized, and transparent ethos of blockchain technology, the open access model lowers entry barriers and widens participation.

Under this model, anyone from around the world can invest in innovative technologies and promising ideas right from the ground stage and support the project’s success and growth.

By democratizing investment, open access ensures that smaller investors receive fair allocation, which leads to more participants, thereby growing the project community and improving decentralization. A wider distribution not only reduces the risks of pump-and-dumps but also helps create organic demand post-launch.

Furthermore, more participants mean higher transaction volumes, increased fees, and greater revenue for the launchpad.

While this practice can introduce risks like bots, sybil attacks, and low-quality participants, they can be mitigated with the help of smart gatekeeping. Launchpads like CoinTerminal have proved that open access with smart gatekeeping models indeed work, successfully driving broader participation and sustained growth.

According to CryptoRank, CoinTerminal is among the top 10 fundraising platforms , having conducted 49 IDOs in the past year and 79 to date, collectively raising over $20 million.

From AI, P2E, DePIN, and RWA to social networks, the launchpad hosts all kinds of projects to offer its users a wide variety and the ability to diversify.

This IDO launchpad enables retail and institutions alike to join for free without any token staking or subscription requirements.

The no-barrier platform makes fundraising and pre-sale participation smooth and hassle-free. Investors simply opt in for an IDO, complete KYC, and contribute only after winning a ticket, and pay the fee only when claiming tokens.

Interestingly, one can even claim a refund if they do not like the project’s performance, in cases where applicable, and the refund is processed with no questions asked.

More importantly, winners on CoinTerminal are selected entirely at random using VRF-based selection, with full reports provided for each IDO.

As crypto markets surge, investors are looking for early access to the next big opportunity. While subscription models offer security, they exclude smaller investors and hinder decentralization. Open-access launchpads, backed by transparent selection and smart security, are the future of crypto fundraising. Platforms like CoinTerminal prove that when investment is democratized, both investors and projects thrive.