Crypto tokens have been a hot topic since 2017 but launching one can be a daunting task. Since their inception we did see the vast majority of them fail, anyway.
Let us guide you through some of the steps that will shift the odds and make it more likely your token launch will succeed and not fail.
This article will outline essential factors such as:
- What factors need to be considered before launching your token
- How to launch on various platforms
- The importance of marketing your token properly
- Mistakes that may lead to your token failing, including failure to abide by regulations
Don't worry if it sounds complicated. Start planning for the future of your business today!
Factors to consider before launching your crypto token
Protect your token from being copied.
A real-world example would be the endless DEX clones like SushiSwap. The way copycats could impact you is if someone would launch a copycat version of your ICO or DeFi token and get there first. Copycats have the potential to damage your reputation and have a negative long-term effect on your company.
Do not use an ERC-20 token unless you have a business purpose for doing so.
If you are releasing a new product that will work with an existing Ethereum token, then make sure to use that standard to ensure compatibility across all platforms which support this standard.
Choose good brand name that is easy to remember.
A widespread mistake made by the early token economy founders is to forget about their product name and choose a name that is easy to forget.
As the old saying goes, it probably should be avoided if it sounds like a car name.
The worst thing you could do is name your token something which makes you want to buy your token right now! Make this as memorable as possible.
Do not skimp on marketing and advertising of your token.
Marketing and promo is needed. If you leave it to “organic” word of mouth, hardly anybody will learn about your token.
Also make sure you include all the factual information that potential investors need to know before they buy your token. No one will want to invest because you say your token looks excellent; they want to know about the direction it is going in and how their investment will help progress this.
Go through all of the regulatory requirements carefully if you are selling tokens within your country.
It is essential to abide by the laws of where you are selling because there may be requirements for your company or certain restrictions for selling crypto token investments in certain countries. Make sure that you know what you cannot do about selling tokens.
Make sure that the token is tradable.
If you plan to create a permissioned token dedicated to software and consultants, then, of course, you would want to ensure that the only way for it to be traded is with your company's permission.
But for public tokens, how can your product be valid if it can't be traded on an exchange?
Think about the fees you will charge for trading on an exchange.
Again, depending on what your token will do, you may need or want trading fees included in the sale price.
This is an important information that should be clearly communicated from the start in all marketing and advertising material. Your investors might give you bad reputation online if they later find out about hidden costs that have not been appropriately communicated.
How to choose the right blockchain as a platform?
There are several big blockchains out there with different approaches, features, marketing opportunities, and trading possibilities.
For example, if your business logic needs to use a fungible token, then Ethereum as a platform with the ERC20 standard will probably suit your needs.
If you plan to launch a product that requires any more features than the ones already included in an ERC20 token, then you might need to search among other blockchains that can run fungible tokens.
Deciding on the best platform for your intended purpose is essential. If you do not see your product fitting within any of the top 5 platforms available at the moment, you should always consider creating a new blockchain! That way, you can ensure that everything is in line with your needs and that all regulations have been considered.
5 key tips on choosing the right blockchain as a platform:
- Find out whether all of the features you need are already included in the platform.
- Find out whether their native token (Ether, ERC20, etc.) has been updated to include all of your desired features.
- Make sure that if you have the main change in mind or a significant twist to the standard token functionality, then it will not be incompatible with any other platforms that support this standard.
- Make sure it is no longer necessary to buy tokens from other platforms to access platform features and functions.
- Exchangeable tokens can be traded on other platforms.
How to market your token launch properly?
Marketing and advertising your token launch is arguably the essential part of your token launch.
You must communicate to potential investors and the general public what your token does and how it will benefit them while also making sure that regulation is taken into consideration.
For example, if you want to launch a payment solution for freelancers, you must explain why this is such a valuable product and how it can help anybody who has ever paid for freelance services before.
Getting the word out about your project can open up more opportunities for funding than you might think at first glance. However, there are many different ways that you can use to market your ICO. The right marketing strategy will help to attract investors in the way you want them.
Without a marketing campaign, your token will be invisible
There is a lot of hype around tokenization, DeFi and NFT marketplaces. New investors and projects appear daily, and there is a risk of being invisible in this vast crowd.
Here are 7 more tips to help you stay out of the early stages.
- Hold your token launch on a platform that is well known and trusted by crypto-investors.
- You must have complete confidence in the platform you choose to launch your product on.
- Get your token listed on a well-known cryptocurrency exchange to trade your token after it gets launched.
- Double check that you work with trustworthy partners before holding a launch for any project.
- Make sure that you create a professional and detailed whitepaper explaining how your project will benefit users and why other people should invest in it.
- Create an official website with all the information needed to buy your token once it has been launched. You can create a new website or use an existing one for this purpose.
- Ensure that every piece of information about your important project is uploaded to media outlets such as YouTube, Twitter, etc. Also, make sure that the press release has been sent through all major news websites.
Launching your crypto token is becoming increasingly popular, but it is not always easy to launch your own ICO while adhering to relevant laws.
The above tips and tools should help you create a token that investors and the general public will receive well.