Why Software Alone Isn’t Enough When Launching A Token in the Current Crypto Landscape

Crypto tokens are the backbone of most digital asset projects; however, with automation making it simple for anyone to launch a token, innovators relying on a software-approach only to make a debut are at a higher risk of never taking off. 

For context, over 9.7 million tokens have been launched on Solana’s Pump.fun launchpad since it came into existence in January 2024. Out of these, only a handful have graduated to eventually trade on a Solana decentralized exchange (DEX) and even fewer make it to big centralized exchanges such as Binance and Coinbase. 

The latest statistics indicate that the ‘graduation rate’ is a mere 0.81% which is significantly low given the number of tokens launched on a daily basis. 

While a larger percentage of the coins launched on Pump.fun don’t actually deserve to graduate, crypto projects with a tangible value proposition have ended up being collateral damage in this mess. This is especially true for the ones that only created a token and left it to the fate of degens who are constantly chasing the next pump and dump. 

What if serious crypto teams started reconsidering their go-to market approach? Instead of solely focusing on the technicals, a good number of projects would be better off working in collaboration with experienced and ethical market-making service providers such as Kairon Labs. But before going into the details of why an all-inclusive partner would be a game-changer, let’s first highlight a few shortcomings of relying on software alone to launch a crypto token. 

A Launch Without Lift

Unlike in the early days when the crypto market was reserved for a few nerds, the ecosystem has grown tremendously in recent years. As such, there are quite a number of software service providers specifically tailored for token designing, development and launching. The caveat is that in most cases these players only focus on short term objectives, including token creation and getting it listed on a few small DEXs or CEXs at best. 

While a software-only approach may achieve ‘results’ faster, it lacks the strategic depth required to see through crypto tokens become big tickers on some of the largest exchanges. Here are some of the reasons why most are not successful in the long term: 

• Low liquidity - Without proper and ethical market-making, most of the crypto tokens suffer from high volatility and poor price discovery as soon as they are listed. This makes it very hard for them to thrive, regardless of the underlying fundamentals. 

• Fragmented exchange support - While a crypto project could secure listing on several small exchanges, uncoordinated listings can sometimes cause user confusion as well as increase the chances of fragmented liquidity before token even goes mainstream. 

• Lack of strategic guidance - A group of software developers can easily be the best builders but end up lacking some vital aspects such as exchange negotiations, market-making and a long-term narrative strategy for their token to succeed. 

The Case for Strategic Market-Making Partners

As mentioned in the introduction, there are several market-making partners that have come up to solve the challenges that crypto innovators face when launching their project tokens. One example of a long-standing market maker is Kairon Labs, which has worked with over 500 projects, according to company statements.

So, what exactly stands out about leveraging an ethical market maker? For starters, experienced token launching partners enjoy a deep network of  exchanges which makes it easier for them to negotiate for token listings. Instead of teams going through the stress of cold-pitching, Kairon Labs for instance handles the entire exchange listing process – this is more cost effective and provides expedited results. 

This ethical crypto market maker also features proprietary trading software which it connects to the exchanges where the tokens are listed to optimize liquidity with tight spreads, controlled volatility and deep order books. The software is constantly tweaking strategies real-time, executing trades to enhance market efficiency and managing inventory. This avoids the situation where crypto projects launch without the necessary market-making support causing token prices to be manipulated. 

It is also worth mentioning that a strategic market-making partner is more likely to curate customized solutions depending on the needs of a particular crypto project. For example, Kairon Labs has gone a step further to provide advisory services, spanning across important facets in the token creation and launching process; these include verified token launch strategies, tokenomics guidance and overall advisory services for projects at all stages. 

Notably, the process of getting started with market-making service providers such as Kairon Labs is relatively straightforward; in this case, it involves an onboarding process with four main steps. The first one is qualification of business ethics alignment, after which a contract is signed, KYC/AML verification and finally an onboarding call with dedicated traders and the account manager.  

Conclusion 

For a long time, crypto market innovators and stakeholders have ignored the importance of investing beyond the software aspect. But with all the noise currently in the market, a simple token launch will not cut it. 

This is why all-inclusive token launch partners are becoming more necessary by the day; more importantly, they not only provide exchange listing services and guidance in the initial stages but remain supportive with the necessary catalysts for a token to go mainstream, including advisory in later stages, market-making and IP licensing in some instances. This cuts out the work for crypto teams, giving them more time to focus on the core product itself.