50% of all cryptocurrencies ever launched have died. More than 14,000 of the over 24,000 cryptocurrencies listed on CoinGecko since 2014 were dead as of January 2024. There is a lingering misconception that you just use software to launch a token, list it on a handful of exchanges, and start making money. Albeit simplified by auxiliary tools like memecoin launchpads, creating a crypto token is complex, and sustaining its existence – even more so.
Which tokens survive? High-value tokens tend to start with a whitepaper, which answers why the cryptocurrency exists and how it will add value to the market and its users. Tokenomics is the next stage. As the core of the cryptocurrency’s financial model, it determines the long-term viability and value to holders. The issuer structures the token’s demand, supply, and allocation mechanisms (community, team, etc.) to ensure sustainability for investors and traders. Precise vesting schedules and economic incentives like rewards and staking are paramount when encouraging participation.
After tokenomics, the creator chooses the blockchain platform. Ethereum remains popular, but the risk of congestion exists, while Solana and Avalanche offer higher throughput. The overall deployment cost and gas fees are a significant consideration. Solana and Binance Smart Chain are more affordable than Ethereum.
An ethical market maker ensures compliance
The listing is the most crucial stage, without a doubt. Compliance isn’t optional unless you don’t mind regulators reaching out. Tokens must be classified correctly: security tokens represent an investment contract, while utility tokens are used within an ecosystem or platform. Tokens with their own blockchain are considered coins – for example, SOL (Solana blockchain) or TRX (Tron blockchain). Misclassification can lead to substantial penalties, especially in some jurisdictions.
Partnering with a platform that knows the law pays off. Reputable market makers like Kairon Labs prioritize ethical practices, ensure alignment of liquidity provision with regulations, and maintain transparent order books. Kairon Labs delivers upscale market-making services to token projects and digital asset issuers. It is behind more than 500 token launches and trades on leading exchanges like Binance, Bybit, KuCoin, and OKX. Its unique, hybrid approach includes relationships with centralized and decentralized exchanges, algorithmic trading, and AI-powered market insights.
While larger companies tend to focus on high-frequency trading, Kairon Labs’ team prioritizes customized liquidity and long-term client growth through an unparalleled combination of personalized services, direct support for each client, and advanced technology. The team helps with tokenomics design, facilitates introductions to suitable exchanges, and develops listing strategies on behalf of clients. Kairon Labs aims to stabilize token liquidity and minimize price volatility and fluctuations by improving bid-ask spreads and increasing liquidity depth.
Creating the smart contract and testing before launch
The smart contract is at the heart of all crypto tokens, automating relevant rules and transactions. Developers use Solidity to code smart contracts on Ethereum, and frameworks like Hardhat or Truffle ease the creation process. Standards like ERC-20 define transfers and other functions for fungible tokens, and ERC-721 or ERC-1155 apply for NFTs. Smart contracts are anything but simple. Developers separate access control from token logic and administrative functions and use unit testing tools to test each function and catch potential vulnerabilities. Once launched, smart contracts are immutable.
It’s best practice to run tokens on test networks before deploying them on mainnets. Platforms like Ethereum’s Ropsten simulate real-world conditions but without any risk. Ropsten is the only testnet that copies Ethereum’s actual behavior.
Token issuers ensure that transfers, burning, minting, and other operations go as planned under different load conditions. Third-party auditors can review smart contracts to avoid exploits following the launch.
Issuers who choose to operate independently are responsible for critical next steps, such as listing the asset on exchanges to ensure wider access and liquidity. They use blockchain analytics tools to monitor user adoption, trading volume, and security incidents. As the market evolves, one must be prepared to adapt smart contract parameters or tokenomics via governance mechanisms or upgradable contracts.
Fundraising options
The options are Initial Coin Offerings (ICOs), Initial DEX Offerings (IDOs), or private sale. The oldest option in history is the ICO, where you sell tokens to the public. It is a suitable approach when the project already has a strong community. Regulatory compliance is essential, and significant marketing efforts are needed as well.
IDOs can offer immediate liquidity because the token is launched on a decentralized exchange (DEX). Competition is higher because this approach is more affordable than an ICO.
Finally, you can choose investors to sell the tokens to, like strategic partners or venture capitalists, prior to the public launch. Advice from an experienced partner will help in the listing stage, specifically where and how to list the token, ex., on a DEX such as Uniswap. You can approach centralized exchanges to reach more people as long as the token is legally compliant and you can afford their listing fees.
Announce the launch on social media, community platforms, and your website with straightforward instructions on how users can buy, hold, or sell the token.
Building a community and sustaining interest
Deployment is just the beginning. Community support and engagement are key to long-term success. You can connect with potential users on X and Discord by answering questions and posting updates. Engaging content like a captivating video series will build the foundation for a vibrant community. Raising awareness of the product might mean approaching crypto influencers or media outlets and running paid ads or email campaigns to attract users. Bonuses or airdrops incentivize early adopters.
Continuous and timely updates and transparent progress reports become tools to adapt to market shifts and build trust. The go-to-market strategy should evolve with the token ecosystem and always take trends and user feedback into account.
50% of all cryptocurrencies ever launched have died. More than 14,000 of the over 24,000 cryptocurrencies listed on CoinGecko since 2014 were dead as of January 2024. There is a lingering misconception that you just use software to launch a token, list it on a handful of exchanges, and start making money. Albeit simplified by auxiliary tools like memecoin launchpads, creating a crypto token is complex, and sustaining its existence – even more so.
Which tokens survive? High-value tokens tend to start with a whitepaper, which answers why the cryptocurrency exists and how it will add value to the market and its users. Tokenomics is the next stage. As the core of the cryptocurrency’s financial model, it determines the long-term viability and value to holders. The issuer structures the token’s demand, supply, and allocation mechanisms (community, team, etc.) to ensure sustainability for investors and traders. Precise vesting schedules and economic incentives like rewards and staking are paramount when encouraging participation.
After tokenomics, the creator chooses the blockchain platform. Ethereum remains popular, but the risk of congestion exists, while Solana and Avalanche offer higher throughput. The overall deployment cost and gas fees are a significant consideration. Solana and Binance Smart Chain are more affordable than Ethereum.
An ethical market maker ensures compliance
The listing is the most crucial stage, without a doubt. Compliance isn’t optional unless you don’t mind regulators reaching out. Tokens must be classified correctly: security tokens represent an investment contract, while utility tokens are used within an ecosystem or platform. Tokens with their own blockchain are considered coins – for example, SOL (Solana blockchain) or TRX (Tron blockchain). Misclassification can lead to substantial penalties, especially in some jurisdictions.
Partnering with a platform that knows the law pays off. Reputable market makers like Kairon Labs prioritize ethical practices, ensure alignment of liquidity provision with regulations, and maintain transparent order books. Kairon Labs delivers upscale market-making services to token projects and digital asset issuers. It is behind more than 500 token launches and trades on leading exchanges like Binance, Bybit, KuCoin, and OKX. Its unique, hybrid approach includes relationships with centralized and decentralized exchanges, algorithmic trading, and AI-powered market insights.
While larger companies tend to focus on high-frequency trading, Kairon Labs’ team prioritizes customized liquidity and long-term client growth through an unparalleled combination of personalized services, direct support for each client, and advanced technology. The team helps with tokenomics design, facilitates introductions to suitable exchanges, and develops listing strategies on behalf of clients. Kairon Labs aims to stabilize token liquidity and minimize price volatility and fluctuations by improving bid-ask spreads and increasing liquidity depth.
Creating the smart contract and testing before launch
The smart contract is at the heart of all crypto tokens, automating relevant rules and transactions. Developers use Solidity to code smart contracts on Ethereum, and frameworks like Hardhat or Truffle ease the creation process. Standards like ERC-20 define transfers and other functions for fungible tokens, and ERC-721 or ERC-1155 apply for NFTs. Smart contracts are anything but simple. Developers separate access control from token logic and administrative functions and use unit testing tools to test each function and catch potential vulnerabilities. Once launched, smart contracts are immutable.
It’s best practice to run tokens on test networks before deploying them on mainnets. Platforms like Ethereum’s Ropsten simulate real-world conditions but without any risk. Ropsten is the only testnet that copies Ethereum’s actual behavior.
Token issuers ensure that transfers, burning, minting, and other operations go as planned under different load conditions. Third-party auditors can review smart contracts to avoid exploits following the launch.
Issuers who choose to operate independently are responsible for critical next steps, such as listing the asset on exchanges to ensure wider access and liquidity. They use blockchain analytics tools to monitor user adoption, trading volume, and security incidents. As the market evolves, one must be prepared to adapt smart contract parameters or tokenomics via governance mechanisms or upgradable contracts.
Fundraising options
The options are Initial Coin Offerings (ICOs), Initial DEX Offerings (IDOs), or private sale. The oldest option in history is the ICO, where you sell tokens to the public. It is a suitable approach when the project already has a strong community. Regulatory compliance is essential, and significant marketing efforts are needed as well.
IDOs can offer immediate liquidity because the token is launched on a decentralized exchange (DEX). Competition is higher because this approach is more affordable than an ICO.
Finally, you can choose investors to sell the tokens to, like strategic partners or venture capitalists, prior to the public launch. Advice from an experienced partner will help in the listing stage, specifically where and how to list the token, ex., on a DEX such as Uniswap. You can approach centralized exchanges to reach more people as long as the token is legally compliant and you can afford their listing fees.
Announce the launch on social media, community platforms, and your website with straightforward instructions on how users can buy, hold, or sell the token.
Building a community and sustaining interest
Deployment is just the beginning. Community support and engagement are key to long-term success. You can connect with potential users on X and Discord by answering questions and posting updates. Engaging content like a captivating video series will build the foundation for a vibrant community. Raising awareness of the product might mean approaching crypto influencers or media outlets and running paid ads or email campaigns to attract users. Bonuses or airdrops incentivize early adopters.
Continuous and timely updates and transparent progress reports become tools to adapt to market shifts and build trust. The go-to-market strategy should evolve with the token ecosystem and always take trends and user feedback into account.
