Over 80% cryptocurrency startups live less than four months, most often due to bugs and inconsistency with user needs. But even a useful product can fail if the team makes mistakes in moving the project forward.
We talked to the CEO and CMO of the company Coin Liquidity Solutions (CoinLS), which is engaged in marketing and market making in the cryptocurrency market. Philip Veselov and Vinor Zukhubaya talked about common mistakes in project promotion and how to avoid them.
Five steps to success
The goal of most developers is to create a profitable project. To do this, you need users and traders, and to attract them, you need marketing.
Coin Liquidity Solutions is a company from the UAE that has been operating since 2017. She currently manages 165 clients, including JasmyCoin, Robonomics Network, Floki Inu, Flux, Student Coin, Ergo, ContraCoin, MintySwap and Core Multichain.
CoinLS helps projects increase the number of interested users, attract private investment, as well as list tokens and support markets on Binance, Huobi and other popular exchanges.
The company’s specialists identify five stages of promoting cryptocurrency projects:
- Building a community.
- Attracting investments.
- Placing a token on the DEX and advertising.
- Launching trading on a local centralized exchange and market making.
- Access to large platforms, the growth of the community and liquidity.
They don’t always go in strict sequence. For example, developers can simultaneously develop a Telegram channel, prepare for a token sale, and advertise it in cryptocurrency publications.
Community Building
At the first stage, the team creates social media accounts for the product. However, this is not enough: you need to publish content to attract users, communicate with subscribers and receive feedback.
Early participants can become early investors. Their questions and feedback are important information that will help determine the target audience and advertising methods.
The most relevant platforms for cryptocurrency projects are Telegram, Twitter, Reddit and Bitcointalk. Their users are more likely than others to be interested in blockchain, read related news and buy tokens.
“You can find an audience on any platform. For example, we ran the project Jupiter campaign on Instagram: we regularly published posts and stories. As a result, the number of organic page subscribers increased by 15%,” says Vinor Zukhubaya, CMO Coin Liqiudity Solutions.
Error 1: chase metrics, such as buying followers or reviews. People will be wary if they see a chat with a thousand participants and a couple of messages a day.
How to avoid: regularly talk about the project in social networks and the media, organize activities for subscribers and ask their opinion about the product. You can also give gifts: branded t-shirts, tokens or Telegram stickers.
Attracting investments
Quality projects easily pass this stage. To attract investments, an MVP or preliminary results of work on it are enough.
Typically, project tokens are bought by venture funds. Other ways to get investments are searching for investors and holding token sales.
The biggest problem is the further use of funds:
“According to our experience, projects are divided into two types: those who are in love with their product forget about advertising, and those who are passionate about advertising forget about the product,” comments Vinor Zukhubaya.
Error 2: engage only in advertising or development. If social networks are quiet, users may decide that the project has closed, and if the product is not updated, they can leave the community.
How to avoid: share responsibilities. If one person is engaged in marketing and development, then most likely he will focus on one thing.
DEX placement and marketing
The placement itself does not cause difficulties: the founders of the project create a pool on a decentralized exchange and contribute liquidity to it.
But after that, you need to do advertising in order to interest traders.
“There are many pitfalls in marketing. The biggest mistake is to think that you need to invest in advertising once. If it were true, Coca Cola, Nike, Apple and other giants would not spend billions of dollars on marketing,” explains Vinor Zukhubaya.
Error 3: abandon advertising, because DOGE entered the top 100 in terms of capitalization even without it. But this is an exception: the creators of the project had authority in the community, and now Elon Musk indirectly advertises it. For a new project, the lack of marketing can turn into a failure: simply no one will know about it.
Solution: advertise and monitor its quality. You should not take posts from channels with cheated subscribers or influencers who are not interested in cryptocurrency. Coin Liquidity Solutions runs campaigns with YouTube bloggers watched by experienced investors and beginners.
Error 4: run too aggressive ads and get banned on Twitter, Reddit or Google.
How to avoid: Use pay-per-result arbitrage advertising. Its customers do not risk advertising accounts and budget.
Listing on a local exchange and market making
This is one of the most important stages, because most investors trade on CEX. But one placement is not enough: you need to create favorable conditions for trading.
Market making (creating a market) is the process of placing liquidity in the order book near the current price.
There are makers in the stock, commodity and cryptocurrency markets. The trading fee for their main instrument – passive pending orders – is called “maker fee”.
The task of the maker is to provide traders with the opportunity to buy and sell tokens at a market price. Exchanges do not prohibit market making: a small spread attracts users, and additional liquidity helps fight price spikes.
Coin Liquidity Solutions uses special software and strategies for market making:
“First, we select a suitable centralized exchange. Usually, the listing of a token is paid, so it is important to launch trading on the site, which is used by the most active part of the community and the target audience of the project. Then we discuss with the founders the desired result of market making, because each client has his own goals,” says Philip Veselov, CEO of the company.
The average results of the company’s work are a spread of less than 1%, liquidity near the market price in the amount of $10-30 thousand, an increase in organic volumes by 30-50% during the first months of operation.
Projects make mistakes in market making almost more often than in marketing.
Mistake 5: refuse the services of market makers. Without professional software and experience in providing liquidity, it is difficult to achieve good results.
Mistake 6: choose unsuitable exchanges, for example, with inflated volumes or only popular cryptocurrencies. In this case, the token is unlikely to be of interest to users.
Error 7: list the token on exchanges with high trading fees. If the exchange does not support reduced commissions for pending orders, market making will cost more.
Error 8: Opt out of market making. Most likely, the project will not have markets.
“Hype projects with organic trading volumes from $20 million per day do not need to maintain the market: users themselves provide liquidity and keep a narrow spread. But a startup is unlikely to receive such volumes and attract traders without market making,” Philip Veselov is sure.
How to avoid: hire a professional market maker and keep track of which exchange he wants to create a market on.
How to evaluate the prospects of a token for its promotion
The prospects of the project can be assessed by the quality of marketing. What to pay attention to first of all?
Large media like Cryplogger, CoinDesk and The Block audit advertised projects. The same goes for popular crypto influencers: they value reputation and avoid products with weak potential.
“If major publications write about the project, and influencers do collaborations with it, its prospects are higher than for similar products. But you can’t recognize scammers only by the level of advertising, you need to study information about the project and its creators,” explains CEO Coin Liquidity Solutions Philip Veselov.
Other evaluation criteria: community activity, adherence to the roadmap, and listing of the token on centralized exchanges.
conclusions
Even the most interesting project will not be profitable without a community, advertising and an active market. Promotion is just as important a part of product development as development.
Developers can develop the community on their own and place tokens on decentralized exchanges. However, advertising and market making should be entrusted to professionals: they will help you avoid mistakes and not waste your money.
Subscribe to the Cryplogger channel at YouTube!
Found a mistake in the text? Select it and press CTRL+ENTER
Over 80% cryptocurrency startups live less than four months, most often due to bugs and inconsistency with user needs. But even a useful product can fail if the team makes mistakes in moving the project forward.
We talked to the CEO and CMO of the company Coin Liquidity Solutions (CoinLS), which is engaged in marketing and market making in the cryptocurrency market. Philip Veselov and Vinor Zukhubaya talked about common mistakes in project promotion and how to avoid them.
Five steps to success
The goal of most developers is to create a profitable project. To do this, you need users and traders, and to attract them, you need marketing.
Coin Liquidity Solutions is a company from the UAE that has been operating since 2017. She currently manages 165 clients, including JasmyCoin, Robonomics Network, Floki Inu, Flux, Student Coin, Ergo, ContraCoin, MintySwap and Core Multichain.
CoinLS helps projects increase the number of interested users, attract private investment, as well as list tokens and support markets on Binance, Huobi and other popular exchanges.
The company’s specialists identify five stages of promoting cryptocurrency projects:
- Building a community.
- Attracting investments.
- Placing a token on the DEX and advertising.
- Launching trading on a local centralized exchange and market making.
- Access to large platforms, the growth of the community and liquidity.
They don’t always go in strict sequence. For example, developers can simultaneously develop a Telegram channel, prepare for a token sale, and advertise it in cryptocurrency publications.
Community Building
At the first stage, the team creates social media accounts for the product. However, this is not enough: you need to publish content to attract users, communicate with subscribers and receive feedback.
Early participants can become early investors. Their questions and feedback are important information that will help determine the target audience and advertising methods.
The most relevant platforms for cryptocurrency projects are Telegram, Twitter, Reddit and Bitcointalk. Their users are more likely than others to be interested in blockchain, read related news and buy tokens.
“You can find an audience on any platform. For example, we ran the project Jupiter campaign on Instagram: we regularly published posts and stories. As a result, the number of organic page subscribers increased by 15%,” says Vinor Zukhubaya, CMO Coin Liqiudity Solutions.
Error 1: chase metrics, such as buying followers or reviews. People will be wary if they see a chat with a thousand participants and a couple of messages a day.
How to avoid: regularly talk about the project in social networks and the media, organize activities for subscribers and ask their opinion about the product. You can also give gifts: branded t-shirts, tokens or Telegram stickers.
Attracting investments
Quality projects easily pass this stage. To attract investments, an MVP or preliminary results of work on it are enough.
Typically, project tokens are bought by venture funds. Other ways to get investments are searching for investors and holding token sales.
The biggest problem is the further use of funds:
“According to our experience, projects are divided into two types: those who are in love with their product forget about advertising, and those who are passionate about advertising forget about the product,” comments Vinor Zukhubaya.
Error 2: engage only in advertising or development. If social networks are quiet, users may decide that the project has closed, and if the product is not updated, they can leave the community.
How to avoid: share responsibilities. If one person is engaged in marketing and development, then most likely he will focus on one thing.
DEX placement and marketing
The placement itself does not cause difficulties: the founders of the project create a pool on a decentralized exchange and contribute liquidity to it.
But after that, you need to do advertising in order to interest traders.
“There are many pitfalls in marketing. The biggest mistake is to think that you need to invest in advertising once. If it were true, Coca Cola, Nike, Apple and other giants would not spend billions of dollars on marketing,” explains Vinor Zukhubaya.
Error 3: abandon advertising, because DOGE entered the top 100 in terms of capitalization even without it. But this is an exception: the creators of the project had authority in the community, and now Elon Musk indirectly advertises it. For a new project, the lack of marketing can turn into a failure: simply no one will know about it.
Solution: advertise and monitor its quality. You should not take posts from channels with cheated subscribers or influencers who are not interested in cryptocurrency. Coin Liquidity Solutions runs campaigns with YouTube bloggers watched by experienced investors and beginners.
Error 4: run too aggressive ads and get banned on Twitter, Reddit or Google.
How to avoid: Use pay-per-result arbitrage advertising. Its customers do not risk advertising accounts and budget.
Listing on a local exchange and market making
This is one of the most important stages, because most investors trade on CEX. But one placement is not enough: you need to create favorable conditions for trading.
Market making (creating a market) is the process of placing liquidity in the order book near the current price.
There are makers in the stock, commodity and cryptocurrency markets. The trading fee for their main instrument – passive pending orders – is called “maker fee”.
The task of the maker is to provide traders with the opportunity to buy and sell tokens at a market price. Exchanges do not prohibit market making: a small spread attracts users, and additional liquidity helps fight price spikes.
Coin Liquidity Solutions uses special software and strategies for market making:
“First, we select a suitable centralized exchange. Usually, the listing of a token is paid, so it is important to launch trading on the site, which is used by the most active part of the community and the target audience of the project. Then we discuss with the founders the desired result of market making, because each client has his own goals,” says Philip Veselov, CEO of the company.
The average results of the company’s work are a spread of less than 1%, liquidity near the market price in the amount of $10-30 thousand, an increase in organic volumes by 30-50% during the first months of operation.
Projects make mistakes in market making almost more often than in marketing.
Mistake 5: refuse the services of market makers. Without professional software and experience in providing liquidity, it is difficult to achieve good results.
Mistake 6: choose unsuitable exchanges, for example, with inflated volumes or only popular cryptocurrencies. In this case, the token is unlikely to be of interest to users.
Error 7: list the token on exchanges with high trading fees. If the exchange does not support reduced commissions for pending orders, market making will cost more.
Error 8: Opt out of market making. Most likely, the project will not have markets.
“Hype projects with organic trading volumes from $20 million per day do not need to maintain the market: users themselves provide liquidity and keep a narrow spread. But a startup is unlikely to receive such volumes and attract traders without market making,” Philip Veselov is sure.
How to avoid: hire a professional market maker and keep track of which exchange he wants to create a market on.
How to evaluate the prospects of a token for its promotion
The prospects of the project can be assessed by the quality of marketing. What to pay attention to first of all?
Large media like Cryplogger, CoinDesk and The Block audit advertised projects. The same goes for popular crypto influencers: they value reputation and avoid products with weak potential.
“If major publications write about the project, and influencers do collaborations with it, its prospects are higher than for similar products. But you can’t recognize scammers only by the level of advertising, you need to study information about the project and its creators,” explains CEO Coin Liquidity Solutions Philip Veselov.
Other evaluation criteria: community activity, adherence to the roadmap, and listing of the token on centralized exchanges.
conclusions
Even the most interesting project will not be profitable without a community, advertising and an active market. Promotion is just as important a part of product development as development.
Developers can develop the community on their own and place tokens on decentralized exchanges. However, advertising and market making should be entrusted to professionals: they will help you avoid mistakes and not waste your money.
Subscribe to the Cryplogger channel at YouTube!
Found a mistake in the text? Select it and press CTRL+ENTER
