Navigating the Token Lifecycle: From Launch to Market Sustainability
Launching a token is one of the most exciting milestones for a blockchain project. However, the road from conception to sustained market presence is fraught with challenges.
Published on Nov 28, 2024
Launching a token is one of the most exciting milestones for a blockchain project. However, the road from conception to sustained market presence is fraught with challenges. Many founders approach the lifecycle with enthusiasm but lack the critical insights and planning necessary to navigate its complexities.
At Tokenise, we’ve worked with countless projects and seen the pitfalls founders face. From pre-launch preparation to long-term stability, understanding the entire token lifecycle is key to building a project that lasts.
Pre-Launch: Laying the Foundation
The most crucial step for founders is seeking expert guidance early in the process. Too many projects start with a token model designed by a friend who “was good at maths in school.” This is a fast track to failure. Tokenomics requires a nuanced understanding of ecosystems, market dynamics, and engineering.
For those with the resources, engaging consultants (like Tokenise’s Enterprise service) is invaluable. If consulting costs are a hurdle, SaaS tooling like Tokenise’s Platform provides an affordable alternative for founders to model and refine their tokens with low barriers to entry.
To prepare for a successful launch, founders should focus on:
- Market Makers: Engage a reliable partner to optimise token pricing and liquidity.
- Token Design and Engineering: Build a basic design for fundraising but develop the deeper engineering alongside it.
- Vesting Schedules: Treat this as a critical aspect of investor relations—poorly planned vesting can derail deals.
- Community Building: Establish a compelling narrative early and start growing your audience immediately.
- Listing Partners: Work with well-connected consultants or market makers to secure exchange listings efficiently.
The Launch Phase: Flexibility Over FOMO
A token’s launch strategy can make or break its future. Two key elements founders must manage are liquidity and sell pressure. Insufficient liquidity at launch, combined with unchecked sell pressure, can crush the token price. Recovery becomes an uphill battle once the market loses confidence.
Good tokenomics addresses both sides of the equation—not just making the price go up, but also preventing it from going to zero. Many founders focus solely on growth, forgetting to safeguard against catastrophic drops.
When it comes to the launch platform—whether it’s an IDO, IEO, ICO, LBP or launchpad—the choice depends on market sentiment. The market is unpredictable, and founders must remain flexible, adapting their strategy to align with the current wave of interest. Think of it like surfing: surfers don’t create waves—they wait for the right one and ride it with precision. Founders should prepare multiple strategies, so they’re ready to catch the market’s momentum when the time is right.
Post-Launch Growth: Sustaining Momentum
The excitement of a successful launch can fade quickly without a plan to maintain momentum. Founders need a roadmap that spans multiple quarters, incorporating initiatives like:
- Content Campaigns: Stay visible in the public eye with engaging and consistent communication.
- Growth Strategies: Leverage referral programmes, airdrops, and staking rewards to incentivise engagement.
- Community Events: Host hackathons, meetups, or partnerships that keep your community engaged.
- Delivery Milestones: Build trust with a track record of delivering on promises.
Consistency and activity are the secret sauce. Projects that remain active, innovative, and aligned with their community are more likely to weather market volatility.
Stabilising for the Long Term
Market volatility is inevitable, but projects with deep liquidity pools tend to fare better. More liquidity cushions sell pressure, reducing the impact on token prices. Founders should prioritise liquidity incentives as a core part of their strategy.
Equally important is understanding the relationship between reward emissions and sell pressure. If over 50% of rewards are being sold off immediately, it’s a red flag. This behaviour can undermine the token’s stability. The solution lies in reducing emissions where necessary and building a deeply engaged community that values the token beyond its monetary rewards.
Tokenise: Guiding Founders Through Every Phase
At Tokenise, we offer a comprehensive suite of services to help founders navigate every stage of the token lifecycle:
- Pre-Launch: Build foundational models with our tooling or engage our consultants for bespoke strategies.
- Launch: Develop flexible plans tailored to market sentiment, ensuring liquidity and sell pressure are managed effectively.
- Post-Launch: Provide ongoing support through enterprise-grade tools and expertise, enabling founders to make data-driven decisions.
Our clients benefit from access to cutting-edge software, expert networks, and proven methodologies that instil confidence and preparedness at every stage.
The Future of Blockchain Projects
The next wave of blockchain projects that endure will be defined by sound fundamentals:
- Real-world utility backed by robust ecosystems.
- Intentional and purposeful tokenomics.
- Communities that are loyal, engaged, and aligned with the project’s vision.
Blockchain founders must move away from speculative, short-term thinking and embrace the full lifecycle of their tokens. At Tokenise, we’re here to guide them every step of the way.
Daniel Tauhore
Founder of Tokenise.