Author: Antonio Sco
Compiled by: Luffy, Foresight News
Original title: Why do 90% of TGE projects end in failure?
Over the past two years, I have worked with more than 30 Pre-TGE projects and discovered three unexpected key reasons why most tokens have failed miserably in TGE.
Those projects that raised millions of dollars were repeating the same mistakes, and I've come to some conclusions: failed projects don't disclose their problems, they just keep blaming others; successful projects don't share their secrets, they just want to claim all the credit.
This leaves new founders feeling lost and completely unsure where to begin. So, what are the core elements of a TGE? Without them, a TGE is destined to fail, therefore founders must dedicate most of their time to them.
As the founder of a marketing company, I'm reluctant to admit it, but the answer isn't marketing. Marketing can amplify good fundamentals, but without a solid foundation, even the most glamorous marketing is just a castle in the air, easily toppled.
Here are three rarely mentioned but core factors that could destroy a TGE project.
Market maker
Choosing a market maker is essentially like playing Russian roulette:
Ideally, both parties share the same incentives and profits are shared.
The worst-case scenario: They plot against you behind your back, causing your years of hard work to go to waste.
The problem of information asymmetry is terrible; they will only show you success stories and never mention the failures.
So, how should you choose a market maker? In 99.9% of cases, you should choose a market maker strongly recommended by a project team you trust or someone you have worked with directly.
Don't trust recommendations from strangers. They get hefty referral fees from market makers, so they'll still recommend strangers even if they're unreliable.
An important reminder: If a project fails, you, not them, will bear the consequences.
Even if you have the best marketing, the most active community, and the top-notch team, if a market maker causes your token price to plummet by 50%, there's nothing you can do to save it.
Token Economics
The same applies to token economics. You and your team may not have studied 50 token models or seen their actual effects.
You absolutely cannot simply copy the token economics of a successful project and assume it will work for you. Investors' goals and appetites are constantly changing, and you must adjust accordingly if you want to attract them to buy.
Similarly, consultants will only show you their success stories; you won't see the projects that failed completely.
One more point: If the current tokenomics is destined to ruin your project, then make changes decisively.
Don't worry about it:
The airdrop hunter will be angry;
People on social media will complain;
Seed investors will be dissatisfied.
If the token price were to plummet by 90% within a week, they would still be dissatisfied; the only difference would be that you would go bankrupt within three months.
Obviously, the best solution is to avoid this situation in the first place, but as an ancient Roman proverb says, "When in dire straits, one must resort to risky measures."
Listing on exchanges
This is the point I most want to emphasize. The problems with market makers and token economics will only become apparent after TGE, but partnering with exchanges is the most painful and dangerous thing before TGE.
Why is there suffering?
Communication is extremely difficult;
It is difficult to coordinate a consistent timetable;
They often change their minds at the last minute, forcing you to postpone TGE.
Why is it dangerous?
Predatory terms will ruin your project;
Many teams are scammed by fake representatives;
Spending millions of dollars to list the token only resulted in selling pressure, with no buying interest whatsoever.
The fastest way to solve this problem is to get to know people inside the exchange and understand the listing cost benchmark to avoid being overcharged.
Due to information asymmetry, many teams waste hundreds of thousands of dollars in the initial negotiations.
Conclusion
Everyone is waiting for a better market environment to launch TGE, but if you haven't done the three things mentioned above, even the best market won't allow your token to gain a foothold. As the founder, you should focus your main energy on these three things, while also supervising other team members to do their jobs well in their respective areas.
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