The Practical Guide To Building Sustainable Tokens With The Right Team
In Brief
A practical guide to sustainable token building highlights how businesses can leverage tokens for fundraising, access, and asset representation—while emphasizing the critical role of market makers like Kairon Labs in ensuring liquidity, price stability, and long-term ecosystem health.
Companies use cryptocurrency tokens as a fundraising method, avoiding debt and retaining equity ownership. They also support anonymous investments. Some businesses offer their investors rewards in cryptocurrencies for their support during their early days as startups. Token giveaways or airdrops are an effective PR strategy for businesses, as they increase awareness of their market presence.
Tokens grant access to exclusive communities, services, or content, making them suitable for membership or subscription models. They are transforming how businesses and organizations manage access, offering a more dynamic and flexible alternative to conventional methods.
In some cases, crypto tokens represent a real-world asset like real estate or art and can be purchased, sold, and traded on blockchain platforms like the assets themselves. The difference is that they are broken down into small units, increasing access to traditionally illiquid assets and opening the door to a wider range of investors.
The blueprint for a successful market launch
Deciding to launch a token is only the first step. One must consider tokenomics, the blockchain on which to launch the token, and the software to execute and manage the post-launch process, ensuring the token’s long-term success. The launch partner, a trusted market maker, plays a pivotal role in determining the prospects of any token project. Kairon Labs is a premium market maker that utilizes proprietary trading software meticulously integrated into a network of more than 100 centralized and decentralized exchanges, providing liquidity for tokens launched with their assistance.
Creating and marketing a token involves at least a dozen steps, including establishing the bonding curve, launching the token on cryptocurrency exchanges, analyzing performance, and providing liquidity. Kairon Labs has facilitated the launch of over 400 successful token projects, and its team of traders and quants consistently improves the software, utilizing deep analytics to stay ahead.
Ensuring a token’s stability requires a combination of software tools across governance, liquidity management, analytics, compliance, and community engagement. Kairon Labs’ trading software algorithms are designed with effective risk management in mind. The software instantly adapts to market shifts, maintaining liquidity and providing a holistic view that includes depth and price charts, as well as the ability to track community engagement, trading volume, and user adoption – the essence of precision market mastery. The focus on continuous adaptation allows the market maker to stay ahead of the competition, and its ethical approach is a core element of its vision.
The project never ends with the launch. Entities like Chainlink oracles serve to stabilize prices and mitigate risk by providing real-time price feeds, preventing manipulation or the risk of exploits. Circuit breakers and volatility controls can be built into smart contracts or managed through on-chain automation platforms. The market maker can assist with the post-launch tech stack, which depends on the type of token being launched.
Token types and the market maker’s role in ensuring market health
There are utility tokens, meme coins, asset-backed tokens, liquidity provider tokens, and other types of tokens. Utility tokens serve a specific purpose within a blockchain ecosystem. They are not immune to speculation, although they are primarily functional, and their value may fluctuate depending on the value of the utility the blockchain ecosystem provides.
Common utilities include governance of a blockchain protocol, securing a blockchain network, accessing products or services, paying transaction processing fees, taking part in decentralized finance activities, and more. Utility is not the only factor affecting value; elements such as transaction volumes, ecosystem growth, and macroeconomic trends also play a role. Market makers support the healthy functioning of the ecosystem tied to the token’s use case by ensuring consistent bid-ask spreads and trade execution.
Meme coins usually derive their value from humorous memes. They typically have no utility, aren’t backed by other assets, and lack stablecoins’ price predictability, making them the riskiest token type. Market makers often collaborate closely with memecoin projects to promote community-driven price stability and organic liquidity. They can help create the perception of demand and liquidity, which is critical for attracting retail interest and sustaining hype-driven momentum.
The supply and demand drivers for the asset being tokenized have a direct bearing on an asset-backed token’s price. For example, the price of gold would be directly linked to the value of the token backed by gold. Market makers help ensure that tokens trade in line with their underlying value, correcting discrepancies through arbitrage and maintaining market trust.
Liquidity provider tokens provide liquidity to a decentralized finance platform, hence their name. LP tokens are proof that one has contributed liquidity to the DeFi pool, and that person can withdraw that liquidity in the future. The value of these tokens may fluctuate, with the rules set for the pool typically governing pricing dynamics. LP token values either correlate with the value of the liquidity in the pool or increase over time, as trading fee allocation is proportional to the liquidity provided.
Holding LP tokens comes with the risk of impermanent loss, which the market maker plays a key role in preventing. Market makers also enhance secondary market activity and support the LP token’s tradability. More specifically, they create buy and sell interest for LP tokens on secondary markets, which can be crucial when users want to exit positions quickly without waiting for pool withdrawal or facing slippage. Such support is invaluable in less liquid or newer protocols.
Market makers can help establish a fair market price and reduce volatility for projects that offer incentivized LP tokens, e.g., governance rights or farming rewards, making the tokens more appealing and usable across the broader DeFi ecosystem.
What differentiates Kairon Labs is its hybrid approach, which integrates AI-powered market insights, algorithmic trading, and deep relationships with exchanges. While larger firms focus on high-frequency trading, the team prioritizes ethical market-making practices, customized liquidity strategies, and direct support for each client to ensure long-term growth.
Disclaimer
In line with the Trust Project guidelines, please note that the information provided on this page is not intended to be and should not be interpreted as legal, tax, investment, financial, or any other form of advice. It is important to only invest what you can afford to lose and to seek independent financial advice if you have any doubts. For further information, we suggest referring to the terms and conditions as well as the help and support pages provided by the issuer or advertiser. MetaversePost is committed to accurate, unbiased reporting, but market conditions are subject to change without notice.
About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
