Author: Matt Law, Source: Outlier Ventures, Compiler: Shaw Golden Finance
A successful token issuance does not start with a white paper, nor does it end with listing. It is a full-stack strategy, and most founders are not well prepared.
This article details the real preparations for token issuance; from traction and token economics to legal setup, market timing, trading strategies, and event execution.
If you are considering launching a token this year, this is your starting point.
Two major elements that every token project must have
To get into the sight of top exchanges, the two most important things are product appeal and a real community foundation.
Product traction: the most valuable signals
Tier 1 exchanges like Binance and OKX prioritize on-chain activity and real users. These are hard to fake, so they are critical. This means projects need to have a large number of real users and reflect real market demand for their solutions. Define your core metrics early and build your growth strategy around them.
Community size: social proof still matters
Although it is sometimes possible to fake traffic, having a large user base on platforms such as X, Telegram, and Discord can still serve as a social proof that the project is relevant and important. Second-tier exchanges usually require more than 50,000 followers on X or Telegram before considering docking. You need to develop a community growth plan and execute it as early as possible. Ideally, it should be launched before deep communication with key partners to avoid being positioned as a "small project".
Exchanges often view tokens as products that attract audiences and generate revenue through transaction fees, which explains why community size is important to them. Coin review teams often use the number of followers as a primary metric.
Token Launch Preparation: Founder's Checklist
Before you go public with your token plans, make sure you can answer the following questions:
1. Budget: The days of issuing tokens to raise funds are long gone. In fact, you need at least $500,000 or more to launch a token launch campaign on a second-tier exchange. This budget is mainly used for marketing activities (paying suppliers, paid media fees) and the fiat or stablecoin part of the market maker or exchange agreement.
2. Product status: Is the product online? Is there verifiable traction? Ideally, your product should already be live and have users, or have clear plans to reach thousands of users. 4. Legal Structure: Has the token issuance entity been established? Has a law firm reviewed the token economic model and issued an opinion stating that they believe the token is not a security? This is a hard requirement for most centralized exchanges, as they prioritize avoiding listing security tokens. 5. Security: Is there a plan to conduct smart contract audits for the application and the token itself? Please note that obtaining an audit requires a relatively long preparation time, especially for new customers. 6. Community Development Plan: Is there a plan to grow the community to approximately 100,000 followers?
Why Token Launches Need to Balance Appearance and Substance
Communication is critical to successful token launches. Good token launches succeed because they address two issues simultaneously:
1. Appearance: Demonstrating social proof, showing growth, and managing public image.
2. Substance: The actual state and performance of the product, tangible market traction, and a solid infrastructure.
In short, your job as a founder is to bridge the gap between the two.
Appearance and substance are critical both before and after the token launch (TGE). It is critical to establish trust and reliability through continuous communication before the project launches. A practical approach is to release two to three positive news items per week for about eight weeks before the TGE and continue for about eight weeks after the launch. The TGE is just the starting point for building confidence in the project over the next few years.
Beyond the simple number of followers, consider how many real users are actually interested and might consider participating in the token subscription. It helps to develop a list of potential customers and implement a customer qualification process (which may include KYC certification) so that you have a concrete understanding of the potential purchasing group. Thousands of people passing KYC can increase project confidence, while fewer people (such as 250) may mean that the launch needs to be postponed. KYC is usually necessary for compliant token sales, whether conducted directly or through a launch platform/exchange, but it is not common for airdrops, although some projects will implement KYC in order to claim rewards, which may cause user dissatisfaction.
Plan like a product team: from exploration to implementation
Token issuance is not an activity that can be completed in a week. It is a product milestone and needs to be treated like a milestone.
Once the foundation is in place, it’s time to plan for the execution of your token launch just as you would a product launch:
1. Work backward from the launch date: Most launches take longer than expected. Many teams think the launch date is eight weeks away for months. Pick a realistic date and work backward to plan key milestones for product, legal, marketing, and exchange integration.
2. Preparation and Landing: Preparation includes setting up the token issuance entity, finalizing the token design, and scheduling audits. The token landing phase will begin with the launch of marketing activities, and typically has an 8-week lead-up period before the TGE.
3. Key Workstreams to Cover: Key KPIs for product and community traction, legal and smart contract requirements (including audits), fund management, lock contracts, and token use case narratives for whitepapers and marketing.
It’s also important to keep your token economics flexible and not finalize them too early. Unveiling your token economics too early can backfire if you need to adjust based on investor feedback or changing needs. Finalize when your strategy is clear and your measures are in place.
Design a smart marketing strategy
Your marketing campaign needs to do more than just generate buzz. It also needs to build trust, spark interest, and convert attention into actual engagement.
Plan an 8-week pre-launch period to build your project story before the TGE. Marketing campaigns should be centered around trust signals, product value, and progressive disclosure… not just the token itself.
Equally effective strategies include using mission-based community growth activities similar to Zeely to collect data while rapidly expanding users; launching ambassador programs and key opinion leaders (KOL) cooperation to expand influence, but the premise is that these cooperations are consistent with the core communication content; and maintaining the rhythm of interaction and transparency through regular activities such as weekly AMAs, community meetings and briefings. Content communication needs to follow a clear thread: starting with the core value proposition, focusing on community application scenarios, and finally clarifying the significance of tokens.
Avoid excessive focus on superficial data indicators, and instead create curiosity, drive narrative rhythm, and establish real interactions that can last beyond the TGE.
Timing, market dynamics, and private rounds
When is the best time to launch? While opinions vary, the following considerations can help you clarify the future direction of your project: Exchange Timeline If targeting a first-tier exchange, be aware of the lengthy due diligence time. For example, Binance's current due diligence process takes about 10 weeks. All necessary product, community, and legal indicators need to be met before applying. It is recommended to contact about eight weeks before the expected TGE. Token Issuance Timing The general consensus is that issuance should be chosen in the first half of the market upcycle rather than the second half. This is conducive to better performance by taking advantage of positive sentiment and allows tokens to be unlocked earlier, thereby reducing downward pressure later. A common phenomenon is that the time it takes for a project to go online is always longer than expected; many projects often think that "there are about two months left to go online", but they are still stuck at this stage a few weeks later.
Market Competition
The market is currently highly competitive due to the number of projects that are building and planning to issue tokens. CoinMarketCap tracks about 40,000 new tokens every day, which makes the market extremely fierce when competing for user attention. In order to stand out, there is also an "arms race" in the attractiveness of products and communities. Even platforms like Gate, which focus on new token listings, can only list about 100 tokens per month, which is still a small part of the many projects to be issued.
Stakeholder Consensus
The rise of Meme coins reflects people's dissatisfaction with the large number of FDV (fully diluted valuation) tokens in previous private rounds. People seek opportunities to make quick profits ("generate income") on decentralized exchanges (DEX) and Meme coins. Launchpads platforms are also adjusting to avoid projects with FDVs of more than $20 million because users of these projects have previously suffered losses. Anti-VC sentiment has driven interest in Memecoin. While Memecoin is viewed as a "player vs. player" (PVP) game where most people lose money, the market is expected to return to fundamentals and long-term value thinking in the future, but the exact timing is uncertain.
Private placement timing
If you plan to conduct a private placement to seed investors, you need to complete it as early as possible before the launch. Overlapping investor lock-up periods with public offerings can hinder project momentum. It is not ideal to conduct a private placement at a discount (with lock-ups) while others buy at a high price in the market. To ensure stability at launch, you should strive to complete the private placement round as soon as possible before the project is launched so that there are enough net buyers in the market to support the initial circulating market value.
Conclusion
Token issuance is one of the riskiest initiatives for Web3 startups. It is complex, competitive, and difficult to control. However, when executed correctly, the impact can be just as transformative. With the right preparation and strategy, your project can stand out and launch a product that will last.
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