In part 1 of this short series we highlighted the added value we bring for token projects going to market for the very first time. In this blog post we will be diving deeper in what we can do for projects that have been out on the market for a while.
Holistic service offering for existing projects that are already trading
There are many blockchain projects with their own token or cryptocurrency that are already trading. At the time of writing the estimated number is over 7000. The competition is though. every project is looking to attract attention in order to gain market share and increase adoption.
Most projects have the tendency to fade out after a while. Their token price and subsequently market capitalization drops massively because token holders (both institutional and retail) exit their positions when they don’t see a bright future anymore for the project.
Even though the project’s development might be going great and the future is looking promising from the team’s perspective, It’s very hard for outsiders to gauge this, or to look past the current market situation for your project.
At Kairon Labs, we add value in a number of different ways for these projects by coming up with a tailored plan that consists out of the following key pillars:
As a market maker it shouldn’t surprise anyone that we have great personal connections to the exchanges we work with. After all, exchanges are where we connect to and execute trades on 24/7. Through these personal connections we are able to help our clients achieve quicker and more cost efficient listings by reassuring the exchange that we will be partnering up with the project to establish a healthy trading market. Exchanges love projects that take their liquidity management serious.
There are countless reasons why your project could look out for a new exchange listing. Some projects have been listed on smaller exchanges for what seems like forever and never really got a chance to shine on a larger, more legitimate exchange with a bigger user base. Other projects have listed on an exchange with a western user base but would just like to get more exposure to the Asian community.
Whatever the reason, listing on a larger, legitimate exchange can be challenging for projects that have been in a downward spiral in terms of token price, market cap and trading volumes. Remember that exchanges make their money on trading fees. When your project shows little (organic) trading volume and liquidity on the current exchanges it’s listed on, the new exchange you want to list on is not going to be very receptive.
This brings us to our next point.
The goal of hiring a designated market maker for your token or cryptocurrency should be about nurturing a healthy market where buyers and sellers can meet and have optimal price discovery while minimizing slippage when executing trades.
In order to achieve this vision of a healthy market, the 2 most important parts of a legitimate market making strategy are:
- Order book depth (how much liquidity is there in the order book at certain levels)
- Spread (how large is the difference between the bid-ask price)
The result of a healthy market should be higher organic trading volumes and more stability in the token price clearing the way for potential price appreciation. Don’t mistake yourself with price manipulation. It’s a simple fact that increased confidence in your market will often result in appreciation of your token price.
Market making, or liquidity provisioning is our core business at Kairon Labs.
We won’t go into detail too much in this article on the market making strategies and possibilities, please read our other posts about this topic on our blog.
PR, marketing and community engagement
Premier exchange listings and efficient market making strategies are nothing without a strong buzz and (viral) marketing campaign to back them.
This is why at Kairon Labs we work with proven agencies for marketing, PR and community engagement that are hyper focused on creating a positive engagement loop.
These agencies will efficiently combine top-down validation and grassroots marketing strategies to achieve this goal. In practice this means a combination of everything from influencers to grassroots community building on Telegram, Twitter, Reddit,… will be deployed.
For projects that are already trading it is very important to be staying relevant. Retaining and expanding on the attention of the community should be a top priority. After all, these people make up the token holders of the project. When the community doesn’t care (anymore) the volumes will drop together with the token price and the market capitalization.
So there you have it. This concludes the two-part series “What we actually do at Kairon Labs”. We hope this short overview made it easier for you to look into our daily activities.
If you found any of the information insightful or valuable, please do not hesitate to schedule a call with us so we can figure out how we can potentially help your project! You can contact us at www.kaironlabs.com