Understanding Token Launches: An Inside Look at User Acquisition, Marketing Campaigns, and Investor Behavior
The world of gaming is no stranger to the blockchain space. Recently, one of the gaming companies that run advertising campaigns through our network launched a token@@! However, a token launch presents a unique set of challenges that differ significantly from typical game development.
New User Acquisition and Brand Positioning
One of the early observations about this gaming company was the appeal of its game concept and brand positioning to the gamer community. The acquisition conversion rate was impressively above average, especially for this early stage in the funnel.
Despite the shift in budget focus towards token buys campaigns, it is crucial for game brands to to continue with user acqustion campaigns. They represent the company’s alpha and play a vital role in the overall brand position.
Token Buy Campaigns and Audience Segmentation
Expectedly, the audiences for “token buy’ campaigns diverged from the typical gamer demographic. Core audiences included DeFi enthusiasts (referred to as degens) and early retail investors. Two key factors that this audience prioritizes are trust and credibility, followed by the depth of the liquidity pool on the Decentralized Exchange (Dex) and the volume on the Centralized Exchange (Cex).
The Average Funnel Flow and Behavior of Investors
On landing on a URL for gate.io or the Uniswap pool, as two options to ape in and fill their bags a typical degen would first confirm the validity of the token address on etherscan and coinmarketcap (or coingecko), then proceed to assess the community. This process constitutes their usual due diligence.
The Driving Force of Initial DEX Offerings (IDOs)
In IDOs and fair launches, the initial “buy wall” is primarily created by the community and early investors. These are individuals with a vested interest in the token’s success. Once initial volume is created and liquidity is added on the Token Generation Event (TGE), the hype begins, leading to the “pump” where targeted advertising becomes crucial.
Potential Pitfalls: Gas Fees
One of the numerous factors that could affect the launch is gas fees. Spikes in gas fees can lead to significant drop-offs, especially considering that the gamer audiences are, on average, low ticket buyers, and not….. BTC/ETH whales… and have their bags full. Thus, increased gas fees could notably impact conversions.
Strategies for a Successful Launch
To create a successful launch and a stable “buy wall,” it’s beneficial to incentivize the current community and early investors. As an example, this could involve exclusive benefits for those who buy the project token, a 1.5x multiplier on staking, or for early supporters at TGE an in-game assets as rewards for community growth.
While there are many moving parts in a token launch, covering all angles is critical to its success. With live streaming platforms like Binance Live, credibility and hype can be boosted. Renouncing some of the liquidity has also become a trend for enhancing credibility.
Token launches are a complex endeavor, but with thorough preparation and strategic decision-making, they can be navigated successfully. As we continue to watch this space, it’s exciting to think about the potential that lies ahead.
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