Author: Ash
Compiled by: TechFlow
Founders, especially if you are planning to launch a token in the near future, please save this playbook.
When discussing portfolio value-add, it’s not just about getting introduced to other VCs/angel investors to fill funding rounds, but actually working with founders to develop a proper strategy for success. One of these includes a proper token listing strategy on a trusted centralized exchange (CEX).
The following is a high-level guide I wrote to help you and your project navigate the complex landscape when it comes to listing a token on a major CEX.
I've divided it into five parts:
Token Listing Documents
Negotiating with CEXs and market makers
Community
Media Coverage
other
Before we dive in, it is imperative to have a good funding plan in place before launching a token strategy.
Make sure you do the following:
Set aside a budget to pay for exchange listing fees (higher in bull markets) and market making (reservation) fees.
Plan how to raise funds from venture arms of large CEXs (e.g. @BinanceLabs, @cbventures, @OKX_Ventures) as this will improve your chances of listing.
Build relationships with VCs/Angel investors who have strong connections in the industry.
1. Documents required for token listing
In order to issue tokens, project owners need to prepare some documents in advance, which is one of the main requirements for CEX listing.
include:
A well-written whitepaper (describes the vision and mission of the project in detail, explains the protocol mechanics, team, roadmap).
Tokenomics (token details, usage, vesting schedule and sustainable distribution).
Protocol security and token audits from trusted audit providers.
Legal documents (physical documents, legal opinions from lawyers).
Investment and financing documents (recent valuations, share tables).
Completed CEX listing forms (each CEX has its own unique token listing forms to fill out - usually includes company registration, financial data, team, token economics, protocol mechanics, community and impact, legal documents).
2. Negotiate with CEX and market makers
(a) CEX
Today, every CEX listing involves a listing fee, which can range from being paid in stablecoin USD to being given a percentage of the total token supply. Based on our discussions, expect to pay between $200k - $500k (sometimes more) in fees or 5-20% of the total token supply.
In addition to listing fees, project owners may also need to pay technical fees (audits, token integration), marketing fees and security deposits.
Every CEX now has a waiting list as more and more projects rush to get listed. Building relationships and connections with the right people can speed up the process of success.
It is also very important for founders to apply for multiple CEX listings to increase the chances of getting a token listed and use it for negotiations. It is a good idea to collaborate with DeFi wallets and marketing campaigns on various CEXs to attract more attention.
(b) Market Maker (MM)
Introducing a market maker (MM) is a necessary step in the listing process to maintain price stability and ensure healthy liquidity of the token.
MMs are generally divided into two categories:
Loan + Option Model: Market Makers (MM) borrow tokens from projects to provide liquidity and obtain call options (the right to buy tokens at a lower price).
Retention fee + profit sharing model: The project party pays market maker fees every month to maintain liquidity.
@0xLouisT and @minjung_eth did a deep dive into market makers:
https://x.com/0xLouisT/status/1808489954869133497
https://prestolabs.io/research/market-making-predatory-or-essential
3. Community and Social
Build a strong and highly engaged community, almost to a fanatical level, who will become your first users and word-of-mouth evangelists.
some advices:
Master the three major social media platforms: Discord, Telegram/WeChat, and Twitter.
Hire great community managers to manage Discord and Telegram groups, and an ecosystem/business development (BD) lead to ensure partnerships and localization strategies (e.g., Head of APAC or Head of Korea).
Be active on Twitter on the main account and the founders’ accounts, providing users with project updates and promoting the product. It’s even better if the project has a dedicated intern account or spammer to maximize brand awareness (@intern<>@monad_xyz, @HugoMartingale<>@Polymarket).
Integrate with major mission platforms as an alternative go-to-market (GTM) method (e.g. @Galxe, @zealy_i, and @layer3xyz) and build community.
Founders need to constantly promote their projects and stay passionate about what they are building. (Research @keoneHD<>@monad_xyz, @Punk9277<>@_kaitoai, @SmokeyTheBera<>@berachain, @Taran_ss<>@stix_co)
Airdropping tokens to core users and making them rich is one of the best ways to form a loyal user base (although this is a bit difficult nowadays due to massive arbitrage and fake accounts).
4. Media Coverage Crypto Twitter (CT)
Every day is filled with memes, spam, charts, project updates, and posts. Projects need a well-designed and comprehensive marketing plan to ensure that all aspects are adequately covered.
Advanced strategies:
Publish on major crypto news portals for maximum exposure, such as @TheBlock__, @Foresight_News, @BlockBeatsAsia, and @PANewsCN.
KOL marketing usually involves paying for promotion or having them invest at a lower valuation in exchange for marketing content (posts, articles, videos, and channel shoutouts).
Outsource to top marketing agencies. I've had the pleasure of working with some great agencies including @snow949494, @cryptofreedman<>@hypepartners, @JiraiyaReal<>@TailoredWeb3, @ciaobelindazhou<>@ShardDXB.
Publish in-depth research articles: In addition to big names like @Delphi_Digital, @MessariCrypto, and @blockworksres, there are many high-quality companies to choose from, such as @Ian_Unsworth<>@kairos_res, @Steve_4P<>@FourPillarsFP, @blocmatesdotcom, @asxn_r, and @Shoalresearch.
5. Others
@coingecko/@CoinMarketCap token listed.
@dexscreener for providing enhanced token information.
@DefiLlama project is online.
@DuneAnalytics dashboard showing relevant on-chain metrics and user analytics.
@DeBankDeFi supported protocols list.
@tokenterminal data partner.
I would caution that every token offering is unique and a one-size-fits-all approach generally doesn’t work.
There's obviously a lot more to a successful release than what I've covered here, and this is just the tip of the iceberg.
