Entering the phase of too many token launches and listings can cause serious headaches for projects and their founders. It’s not rare, but quite common, that underestimating one or more factors can lead to total failure, despite having a solid product, strong community, and many burned man-days.

It’s well known that the smartest way to progress is by learning from others’ mistakes. Despite this, too many founders lack understanding—and more importantly—execution of this principle. While some are keen to listen and learn, others, not so much. Recently, we cooperated closely with several of our portfolio companies on launch strategies, token listing strategies, and market maker selection. A summary of our key discussions is outlined below.

Work smarter by avoiding failures, study others, and rise by copying the best.

Every project would love to be listed on Binance, and every VC is searching for such a project. However, it’s difficult to even be considered as a suitable candidate. To be listed on any top-tier exchange, it’s assumed that you have strong traction, impressive statistics, well-managed business operations, and all necessary documentation and audits completed. In such a case, you’re in a position to start considering your listing strategy.

Every CEX listing involves a listing fee, which can either be paid in USD-equivalent stablecoins or by offering a percentage of the token’s total supply.

If approved, the listing fee can range from $200k to $500k. In rare cases, this fee may be waived, but that typically applies only to top-tier projects. The other option involves offering a portion of the total token supply. Determining the right amount is challenging, but the usual ask from CEXes is between 10% and, in some cases, up to 20%.

Exchanges are businesses, so it’s natural for them to seek profit. However, some may try to leverage their position and exhibit predatory behavior.

LOOK OUT

• Additional fees – There can be multiple fees added that are not part of the listing fee, such as technical, security, and marketing fees.

• Token as a listing fee – This can create a single point of failure, where the exchange profits regardless, while the project may face significant risks due to a token dump event initiated by the exchange.

• Vesting – Some exchanges require the project to have at least a 6-month cliff or a satisfactory vesting schedule in place to be considered for listing.

CONSIDER

Launch roadmap - Whilst launching simultaneously on tier A can be great for some projects and it's tempting, it's also costly and you could be losing momentum and accrual demand caused by other CEXs users. For the majority of the projects the only option is to start at smaller exchanges, drive momentum, constantly improve trading volumes and strengthen public perception.

From CEXes we would recommend are more established ones, such as Binance, Bybit, Kraken, Upbit, Coinbase, OKX, KuCoin.

Don’t wait until the last minute to establish a connection with the CEX listing manager, as many projects are competing for attention at the same time, creating a huge backlog. Additionally, each CEX has specific requirements that must be met, such as the number of connected wallets, DAUs (Daily Active Users), trading volumes, and TVL (Total Value Locked), among others. It’s crucial to understand these requirements in advance so you can work toward fulfilling them. Start discussions early with as many reputable exchanges as possible. Having multiple options allows you to negotiate better terms and avoids the stress of limited relationships.

A crucial factor in a successful token launch is the market maker (MM) you choose to work with. There are many players in this field—some will work hard to support your project, stabilize token price action, and contribute to your overall success. However, others, especially predatory ones, focus solely on creating profit for themselves, often at the expense of your project, potentially ruining it for good.

How is that even possible?

By providing too many tokens to a single market maker, you create a scenario where they can dump the majority of tokens during launch hype, then rebuy when there is no real demand, generating significant profit while damaging your project.

Market makers operate under different scenarios, so it’s essential to know which option best supports your project’s success.

Below are key considerations when choosing an MM partner:

A. Diversity and Allocation Control

• Select proven MMs: Work with MMs that have a strong track record, and avoid those known for predatory behavior or underperformance.

• Avoid over-reliance on a single MM: Ensure that no single MM controls a significant portion of your token supply to prevent a central point of failure.

• Limit allocation: Cap the total allocation to MMs at 1% to 1,5% of the total token supply to prevent giving too much control to any MM.

• Staggered distribution: Allocate only a portion of tokens upfront, with the remainder distributed once market conditions have stabilized.

B. Careful Selection and Structuring

• Retained MM at launch: Start with a retained MM who is committed to creating market depth without selling into the discovery candle. They should also assist with selecting and negotiating with loan-based MMs post-launch.

• Avoid loan-based MMs at launch: These can be predatory, focusing on immediate gains through price manipulation. Wait for the market to establish a natural strike price before engaging loan-based MMs.

• Establish KPIs: Include options to adjust allocations based on performance and conduct quarterly reviews. Set KPIs carefully.

C. Market Strategy and Conditions

• Understand market conditions: With the current market being thin and low on retail participation, avoid overvaluing the initial launch. Focus on long-term sustainability rather than short-term price spikes.

• Create competitive environments: Encourage competition among MMs to improve performance and accountability. Avoid “trust me” approaches and ensure all decisions are data-driven and transparent.

D. Risk Management

• KPI reviews and refund options: Include clauses allowing refunds or allocation adjustments if MMs fail to meet performance benchmarks, protecting against potential exploitation.

• Focus on qualitative outcomes: In addition to quantitative metrics, assess the cultural fit and service quality of MMs to ensure alignment with your project’s long-term goals.

Navigating the various market makers in the space can be difficult, so here are a few we’ve had positive experiences with:

• 1kx - https://1kx.network/

• Dark Forest – https://www.drkfrst.com/

• STS Digital – https://www.stsdigital.io/

• GSR – https://www.gsr.io/

If you are keen to learn more about MM, have a look at a very well written thread by @0xLouiseT.

Marketing can be simply divided into the 7 Ps: Product, Package, Price, Place, Promotion, People, Positioning, and Processes, as well as the 5 Cs: Customer, Company, Competition, Collaborators, and Climate.

We should also consider adding another C to the standard Cs that suits Web3 perfectly—Community. For the purpose of this article and token launches, we will mostly focus on Promotion, which is closely related to Community.

In the current market, with many projects waiting for better conditions to launch, we expect divided and fractured attention from retail participants once projects decide to proceed with their TGE. Projects will need to capture attention, and while it’s not an easy task, there are multiple ways to achieve this.

A. LEVERAGING YOUR COMMUNITY

• Establish connections: Focus on quality over quantity. Once you build a core group of a thousand true followers by listening to their feedback and being genuine, honest, and hardworking, they will act as your ambassadors, and the network effect will take over. Avoid platforms like Galxe, Zealy, or gaining cheap, dead followers and airdrop hunters.

• Pre-launch buzz: Begin building anticipation well before the launch. This can include teaser campaigns, countdowns, and early community engagement via social media and crypto forums. Examples can be found everywhere.

• Content marketing: Develop high-quality, informative content explaining your project’s vision, use case, and value proposition. Publish blogs, whitepapers, and explainer videos to educate potential investors and users. Encourage community members to create content as well.

• Leverage backers: Gather all backers into a single Telegram group, where you can share updates, ask for connections, amplification, or any other assistance needed. This can save time and energy and can create a small competition among backers to provide more value.

• Avoid bad practices: Steer clear of outdated practices that frustrate the community, such as points collection systems.

B. USING KEY OPINION LEADERS (KOLs)

Onboarding KOLs can significantly impact your project, both positively and negatively. While dedicated KOLs can greatly benefit your project, choosing ineffective KOLs can lead to even worse price action at launch.

• Partnerships with crypto influencers: Collaborating with well-respected figures in the crypto space can be crucial to your success. These influencers can lend their credibility and reach to your project, especially if they are respected for their insights and analysis.

• Target the right focus group: Each KOL specializes in a specific area of Web3, and their followers do the same. Ensure that you target the appropriate ones for your project. Maintain a healthy balance between KOLs who focus on areas aligned with your project’s goals and those who specialize in other aspects, like technical reviews.

• Authentic engagement: Ensure KOLs genuinely believe in your project. Authenticity is key—audiences can easily spot paid promotions that lack real enthusiasm.

• Set up KPIs: Establish realistic KPIs for each KOL to ensure they fulfill their tasks. Include this in your contract and link it to the release of tokens.

Almost every project has a KOL round with favorable vesting terms. Soon, we’ll see how many KOLs will dump their tokens immediately. We don’t blame the KOLs, but rather the founders for their vague approach to KOL rounds. If you don’t communicate your vision properly with KOLs and fail to establish a close connection with them, while also not specifying cooperation terms in the contract, you may be surprised by the selling pressure at TGE.

C. WORKING WITH AGENCIES

Coordinating KOLs is not an easy task unless you have a dedicated and skilled person assigned to this role. It’s worth considering working with KOL, marketing, or PR agencies that have a broad spectrum of KOLs under management and can handle complex campaigns under one roof.

• Choose specialized agencies: Partnering with agencies with a proven track record in the crypto space means leveraging their network and expertise with the unique challenges and regulations of crypto marketing.

• Full-service campaigns: You can choose agencies that offer comprehensive services, including public relations, social media management, community building, influencer outreach, and content creation, or agencies that focus specifically on KOLs. Once you have a skilled marketing team, it’s often more effective to avoid full-service agencies.

• Measurable outcomes: Set clear KPIs for your marketing efforts aligned with your roadmap, such as engagement rates, community growth, and media coverage. Ensure the agency provides regular reports to track campaign effectiveness, and make sure you understand the purpose of each initiative.

There are too many agencies to mention, but here are a few we’ve had good experiences with:

• Nebula – KOL agency led by Miles Deutscher & partners:

• Faculty Group – Full-service agency with an investment arm:

• Surgence – Full-service agency focused on Asia, including an incubator:

D. MEDIA

Don’t forget about media exposure. Unless you are working with a full-service agency, consider publishing on major crypto news portals to maximize your coverage.

Here are a few notable media outlets:

• The Block

• Blockworks

• Foresight News

• BlockBeats Asia

• PANews CN

Leverage the power of your own social media and community to share your content. A must-have combination includes Discord, Telegram/WeChat, and X (Twitter).

As your project grows, it’s crucial to hire experienced community managers. Your community should feel welcomed, and their questions should be answered regularly to build trust.

Don’t hesitate to use the personal accounts of founders to communicate with the community.

Don’t be afraid to experiment with an intern account (or “shitposter”) for communication styles that may not be suitable from the official company or founders.

Host periodic X Spaces with strong guest speakers to increase your reach and credibility.

Use KOLs to amplify your content.

Reward power users with airdrops, but don’t attract users solely for airdrop expectations. Making your most important users and community members wealthier can form a loyal group of supporters (though this is more challenging now with industrial farms and sybils).

We enjoy working with founders who seek help and advice. For a limited period, we often act as an extension of the project, leveraging our experience with token launches. We’ve observed and participated in some of the best launches and witnessed too many failures for various reasons.

Moonhill Capital provides its portfolio companies with an extensive KOL network, connections to reliable agencies, non-predatory market makers, and a broad spectrum of cooperating CEXs.

Don’t forget:

• Coingecko & CoinMarketCap: Token listing

• Dexscreener: Token information

• DefiLlama: Comprehensive data

• DuneAnalytics: Create your own dashboard with metrics and statistics

• DeBank: Track on-chain activity

• Token Terminal: Data partnerships

There are other points not mentioned in this article that we keep for ourselves, as well as additional factors that could be discussed. We’ve summarized the most discussed topics from portfolio companies after searching for similar articles that we couldn’t find.

We found few great treads and borrowed some of their words for which we are thankful mostly to:

Ash from Signum Capital - https://x.com/ahboyash/status/1810303421037285813

0xLouise - https://x.com/0xLouisT/status/1808489954869133497

If you wanna find out more about launch, you might want to check also this thread by A16Z - https://x.com/a16zcrypto/status/1829305655737679887