The cryptocurrency space has become a playground for innovation, speculation, and ambition. For many, the idea of launching a token feels like the ultimate entrepreneurial pursuit—a chance to disrupt industries, build a loyal community, and achieve financial independence. But while the dream is enticing, the reality is far more brutal. Most tokens fail. And they don’t just fail quietly; they collapse in spectacular fashion, leaving behind a trail of disappointed investors, wasted resources, and shattered reputations.
Having spent years immersed in the crypto ecosystem, I’ve seen this cycle repeat itself more times than I can count. I’ve invested in countless projects, from angel rounds to presales, Series A, and beyond. I’ve watched some of these projects soar to unimaginable heights, while others crumbled under the weight of poor planning, unrealistic expectations, and a lack of strategic foresight. The difference between success and failure is rarely luck. It’s almost always about preparation, execution, and strategy. Yet, time and again, I see founders making the same mistakes: underestimating costs, overpromising utility, and neglecting the fundamentals of community building.
If you’re a developer or entrepreneur considering launching a token, let me be clear: this is not a game for the unprepared. The crypto market is unforgiving, and the margin for error is razor-thin. But with the right approach, it’s possible to navigate the chaos and emerge on the other side with a successful project. Let’s explore the hard truths of token launches and the steps you need to take to avoid becoming another cautionary tale.
One of the most pervasive myths among new token founders is that listing a token on a centralized exchange (CEX) is a straightforward and inexpensive process. This couldn’t be further from the truth. In reality, securing a CEX listing is one of the most challenging and costly aspects of launching a token. And if you’re not prepared to shoulder these costs, your project is doomed before it even begins. Most reputable CEXs charge between $200,000 and $500,000 in fees. Some exchanges may offer alternative payment structures, such as accepting 5-20% of your token supply, but this is still a significant cost. Beyond the listing fee, you’ll also need to budget for audits, token integration, and security deposits. These are non-negotiable if you want your token to be taken seriously. And then there’s marketing. Once your token is listed, you’ll need to promote it aggressively. This includes everything from social media campaigns to influencer partnerships, which can easily cost tens of thousands of dollars.
Perhaps the most overlooked expense is liquidity. Without sufficient liquidity, your token will struggle to gain traction, and its price will be highly volatile—both of which are red flags for potential investors. This is where market makers (MMs) come in. MMs are essential for maintaining a healthy order book and ensuring that your token is tradable. They typically operate on one of two business models: a loan plus call option (where they borrow tokens and receive a call option on them) or a monthly retainer fee. Either way, you’re looking at another significant expense. The bottom line is simple: if you don’t have a substantial budget—think seven figures—you’re not ready to launch a token. Start applying to multiple exchanges early, and use competing offers as leverage to negotiate better terms. But remember, without proper funding, your token is dead on arrival.
In the crypto world, your documents are your first impression. They’re the lens through which exchanges, investors, and potential users will evaluate your project. If your documents are sloppy, incomplete, or riddled with errors, you’ll be dismissed as an amateur. And in a market as competitive as crypto, there’s no room for amateurs. Your whitepaper is the cornerstone of your project. It should articulate your vision, outline your roadmap, and explain your protocol in detail. A good whitepaper doesn’t just inform—it inspires. Investors want to know how your token will be used, how it will be distributed, and whether it has long-term value. Your tokenomics document should answer these questions with precision and clarity. Security is paramount in crypto, so a comprehensive audit from a reputable firm is essential for building trust. Compliance is no longer optional, and you’ll need to prove that your token and entity are legally sound, especially if you’re targeting regulated markets. Finally, your pitch deck is your opportunity to sell your project. Highlight your traction, cap table, and last valuation. Make it compelling. Exchanges are inundated with token applications. A flawless application is the bare minimum if you want to stand out. Don’t cut corners here—invest in professional help if necessary.
If there’s one universal truth in crypto, it’s this: tokens without communities are destined to fail. Your community is your lifeline. It’s what drives adoption, creates buzz, and sustains your token in the long run. But building a community isn’t as simple as creating a Telegram group and hoping for the best. It requires strategy, effort, and resources. Start by establishing a strong presence on the platforms that matter most in crypto: X (formerly Twitter), Telegram, and Discord. These are where your potential users and investors are. But simply being present isn’t enough. You need to actively engage with your audience, answer their questions, and address their concerns. This is where experienced community managers come in. Hire professionals who know how to keep your groups active and engaged. Gamification is another powerful tool for community building. Airdrops, rewards, and early access programs can incentivize participation and create a sense of loyalty among your users. But be careful—poorly executed gamification can backfire, attracting opportunists rather than genuine supporters. Community building isn’t just about numbers. A small, engaged community is far more valuable than a large, inactive one. Focus on quality over quantity.
The crypto space is a cacophony of voices, each vying for attention. If you’re not strategic about your marketing, you’ll be drowned out by the noise. Visibility builds credibility, and credibility drives adoption. Publishing deep-dive articles on platforms like Delphi Digital and Messari can help establish your credibility and attract serious investors. Partnering with key opinion leaders (KOLs) can amplify your message and introduce your token to their followers. Choose KOLs with engaged audiences and proven track records. Hiring a top marketing agency can also make a huge difference. Look for agencies with experience in the crypto space and a history of successful campaigns. Marketing is an ongoing process. Don’t stop once your token is listed. Keep promoting it to maintain interest and drive adoption.
Sometimes, it’s the small details that make or break a token launch. Listings on aggregators like CoinGecko, CoinMarketCap, and DefiLlama are essential for visibility. Make sure your token is listed on these sites as soon as possible. On-chain analytics tools like Dune dashboards can showcase your token’s metrics, building transparency and trust. Platforms like Token Terminal and DexScreener can help users track your token’s performance. These details may seem minor, but they can have a big impact on your token’s success.
Launching a token isn’t just a technical process—it’s a business decision. It requires a clear plan, a strong community, and enough funding to see it through. If you skip any of these steps, you’re setting yourself up for failure. The crypto space is filled with opportunities, but it’s also filled with risks. Don’t underestimate the challenges of launching a token. Take the time to do it right, and you’ll increase your chances of success. Remember, a token launch is just the beginning. The real work starts after your token is live. Build a strong foundation, and you’ll be better prepared to navigate the challenges ahead. In the end, the success of your token will depend on your ability to execute your vision, adapt to challenges, and build a loyal community. It’s not easy, but with the right strategy, it’s possible. Don’t be the founder who skips the basics. Be the founder who sets a new standard for success.
Source: https://www.securities.io/the-hard-truth-about-launching-a-token-why-most-fail-and-how-to-succeed/
Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.
Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.
An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.
