Successful token issuance is a full-stack strategy that requires balancing product traction, community size, and compliance readiness.
Written by: Matt Law, Outlier Ventures
Translated by: Saoirse, Foresight News
A successful token launch does not begin with the release of a white paper, nor does it end with the listing on an exchange. It is a comprehensive strategy, and most entrepreneurs are often underprepared.
Over the past decade, we have assisted hundreds of startups in completing this journey. For this reason, we have launched this series of token content: providing entrepreneurs with practical operational guidelines to confidently launch and manage token projects in the current market.
In this article, Matt Law will delve into the preparations needed before a token launch, covering aspects such as product attractiveness, token economic models, legal framework setup, market timing selection, exchange collaboration strategies, and execution of promotional activities.
If you are planning to launch a token project this year, this article will be your starting point.
Two Essential Elements for All Token Projects
To attract the attention of top exchanges, two key points are crucial: product attractiveness and a genuine community base.
Product Attractiveness: The Most Valuable Signal
Top-tier exchanges like Binance and OKX prioritize on-chain activity and the number of real users. These metrics are difficult to fake, making them particularly important. This means that the project needs to have a large number of real users and demonstrate a genuine market demand for its solution. You should clarify core metrics early on and develop growth strategies around these metrics.
Community Size: Social Validation Still Matters
Although there is sometimes the possibility of inflating numbers, having a large user base on platforms like X (formerly Twitter), Telegram, and Discord can serve as a form of social validation, proving the project's relevance and importance. Second-tier exchanges typically require projects to have over 50,000 followers on X or Telegram before considering integration. You need to develop a community growth plan and execute it early. Ideally, this should be initiated before engaging in deep discussions with important partners to avoid being labeled as a "small project."
Exchanges often view tokens as products to attract users and generate revenue through trading fees, which explains the importance of community size. The team responsible for listing reviews often considers follower count as a primary evaluation metric.
Token Issuance Preparation: Founder's Checklist
Before publicly announcing your token issuance plan, ensure you can answer the following questions:
Budget: The era when issuing tokens could easily secure funding is long gone. In fact, to conduct a token issuance on a second-tier exchange, you need at least $500,000 or more. This budget mainly includes costs related to marketing activities (paying vendor fees, paid media placements, etc.), as well as fiat or stablecoin involved in market maker agreements or exchange collaboration agreements.
Product Status: Is your product live? Does it have verifiable market traction? Ideally, the product should be live and have a certain user base or a clear plan to attract thousands of users.
Legal Framework: Has a token issuance entity been established? Has a law firm reviewed the token economic model and issued a legal opinion stating that it does not constitute a security? This is a strict requirement for most centralized exchanges, as they prioritize avoiding the listing of security tokens.
Security Assurance: Is there a smart contract audit plan for the application and the token itself? Note that the audit process can be time-consuming, especially for new clients.
Community Growth Plan: Is there a plan to expand the community size to about 100,000 followers?
Why Token Issuance Needs to Balance "Appearance" and "Substance"
Successful token issuance hinges on communication. The most successful token launches often tell two parallel stories simultaneously:
Appearance: Showcasing social validation, growth trends, and maintaining a positive public image.
Substance: The real status and performance of the product, genuine market attractiveness, and a solid infrastructure.
In simple terms, the founder's job is to narrow the gap between the two.
Both appearance and substance are crucial before and after the Token Generation Event (TGE). Establishing credibility and reliability through continuous communication before the issuance is vital. A practical approach is to release 2-3 positive news items weekly for about 8 weeks before the TGE and continue for another 8 weeks afterward. The TGE is merely the starting point for building project confidence over the coming years.
In addition to focusing on follower counts, consider how many real users are genuinely interested in the project and may participate in the token subscription. It is advisable to create a list of potential users and implement a qualification review process (which may include KYC verification) to clarify the potential buying group. Having thousands complete KYC can enhance project confidence, while only about 250 may indicate a need to delay the issuance. Compliant token sales typically require KYC (which can be conducted directly or through Launchpad platforms/exchanges), but airdrop activities rarely require KYC. However, some projects may set KYC requirements when claiming rewards, which could lead to user dissatisfaction.
Plan Like a Product Team: From Exploration to Execution
Token issuance is not an activity that can be completed in a week; it is a product milestone and should be planned with the same seriousness as any milestone.
Once the groundwork is laid, you should prepare for the execution of the token issuance as you would for a product launch:
Use the issuance date as a backward planning node: Most issuance activities take longer than expected. Many teams feel "we can finish in 8 weeks" for several months. Therefore, set a realistic issuance date and plan backward for key milestones in product, legal, marketing, and exchange integration.
Preparation Phase vs. Execution Phase: The preparation phase includes establishing the token issuance entity, finalizing token design, arranging audits, etc.; the execution phase begins with the launch of marketing activities, usually with an 8-week preparation period before the TGE.
Key workflows to cover: KPI metrics for product and community attractiveness, legal and smart contract requirements (including audits), treasury management, lock-up contracts, and token use case narratives for the white paper and marketing content.
Equally important is to maintain flexibility in the token economic model to avoid premature finalization. If adjustments to the model are needed due to investor feedback or changing demands, announcing the token economic model too early may backfire. Final confirmation should occur once strategies are clear and all preparations are in place.
Designing a Smart Marketing Strategy
Your promotional activities should not be limited to generating hype; they should also build trust, spark interest, and convert attention into actual participation.
Before the TGE, plan an 8-week pre-launch period to build the project narrative. Promotional activities should focus on trust signals, product value, and gradual information disclosure… rather than just focusing on the token itself.
Effective strategies also include: utilizing task-based community growth activities like Zeely to rapidly expand the user base while collecting data; launching ambassador programs and collaborating with key opinion leaders (KOLs) to amplify influence, provided these collaborations align with core messaging; and maintaining interaction rhythm and transparency through regular activities like weekly AMAs, community meetings, and briefings. Content dissemination should follow a clear narrative: starting with core value propositions, focusing on community use cases, and ultimately clarifying the significance of the token.
Avoid overemphasizing superficial data metrics; instead, cultivate curiosity, drive narrative pacing, and establish genuine interactions that can continue beyond the TGE.
Timing, Market Dynamics, and Private Sale Rounds
When is the best time to issue? While opinions vary, the following considerations can help projects clarify their direction:
Exchange Timeline
If the goal is a top-tier exchange, be aware of their lengthy due diligence processes. For example, Binance currently has a review cycle of about 10 weeks. Before submitting an application, ensure that all necessary metrics related to product, community, and legal are met. It is advisable to start engaging with exchanges about 8 weeks before the anticipated TGE.
Token Issuance Timing
The general consensus is to choose to issue in the first half of a market upcycle rather than the latter half. This can leverage positive market sentiment for better market performance and allow tokens to unlock sooner, reducing later selling pressure. A common phenomenon is that the preparation time for issuance often exceeds expectations; many projects believe "we can issue in two months," but weeks later, they are still at that stage.
Market Competition
The current market is highly competitive, with numerous projects developing or planning to issue tokens. CoinMarketCap tracks about 40,000 new tokens daily, leading to fierce competition for user attention. The "arms race" of product attractiveness and community size becomes key to breaking through. Even platforms like Gate, which focus on new token listings, can only list about 100 tokens per month, which is still just a small fraction of the many projects waiting to be issued.
Stakeholder Consensus
The rise of meme coins reflects market dissatisfaction with FDV (Fully Diluted Valuation) tokens from previous private rounds. People are more inclined to seek quick profit opportunities in decentralized exchanges (DEX) and meme coins ("wealth creation effect"). Launchpad platforms are also adjusting strategies to avoid listing projects with FDV exceeding $20 million, as users have suffered losses due to this. Anti-venture capital (VC) sentiment has further fueled the meme coin craze. Although meme coins are seen as "PVP (Player vs. Player)" games (where most people lose), the market expects a return to fundamentals and long-term value thinking in the future, though the specific timing remains unclear.
Private Sale Timing
If planning to conduct a private sale for seed round investors, it should be completed early before the issuance. Overlapping investor lock-up periods with public issuance may hinder the project's momentum. Conducting a private sale at a discount (with a lock-up) while allowing others to buy at a high price in the market is not ideal. To ensure stability at launch, the private sale should be concluded early before issuance, allowing enough bullish buyers in the market to support the initial circulating market cap.
Conclusion
Token issuance is one of the riskiest moves for Web3 startups: the process is complex, competition is fierce, and there is no room for error. However, if executed properly, the transformative effects can be significant. With thorough preparation and a sound strategy, your project can stand out in a noisy market and achieve a successful issuance with lasting momentum.
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