Listing Types

To better understand token launches, it’s important to clarify key terminology. Below is a concise overview of these concepts and why they matter:

This describes the core structure of a token, covering elements like total supply, distribution, inflation or deflation mechanisms, utility, and incentive models. Well-designed tokenomics promotes stability, long-term sustainability, and improved liquidity throughout and after the token launch.

This metric indicates the theoretical market capitalization of a token based on its maximum supply, regardless of whether some tokens are locked, vested, or restricted. It is an important measure that factors in future token issuance, though it is often overlooked by retail investors.

These external participants continuously place buy and sell orders for a token, improving trading liquidity and reducing price volatility. They often leverage token loan mechanisms to supply liquidity during and after a token launch, stabilizing the token’s price and minimizing sudden fluctuations. Their strategies also help strengthen the token’s overall liquidity.

This section provides an overview of different token launch methods, including:

• IDOs

• ICOs/IEOs

• Liquidity Bootstrapping Pools

• Alternative Models

Each method has its own set of advantages and trade-offs. A successful launch involves selecting the approach that best fits your specific goals and circumstances.

While this page offers a general overview, for a deeper dive into each launch type, we recommend exploring the sub-tabs within this section.

1. IDOs (Initial DEX Offering)

IDOs involve launching a new token directly on a decentralized exchange (DEX), enabling users to purchase it immediately. IDOs allow projects to raise capital and distribute tokens while taking advantage of the liquidity and accessibility offered by DEXs. They became a particularly common launch mechanism during the most recent bull market.

IDO: Pros & Cons

Pros:

• Simple to set up, manage, and understand.

• Decentralized and transparent.

• Immediate liquidity on a DEX at token launch.

• Low initial prices for early community members.

Cons:

• Requires liquidity bootstrapping, which can lead to low liquidity, timing issues, or miscommunication between parties.

• Token price is determined without community-driven price discovery.

• Proper allocation can be difficult to achieve.

• High transaction volumes can create technical challenges.

2. ICOs/IEOs (Initial Coin/Exchange Offerings)

ICOs and IEOs are fundraising methods in which a new project or startup issues its own cryptocurrency tokens to the public in exchange for funding. Investors buy these tokens with the expectation that their value will grow as the project progresses.

Tokens are usually listed through a centralized exchange or another intermediary. While both approaches are legitimate launch methods, IEOs are often considered more secure and regulated than ICOs, as the exchange performs due diligence on behalf of investors.

ICO/IEO Pros & Cons

Pros:

• Credibility from the exchange’s due diligence.

• Immediate liquidity thanks to the exchange’s large user base.

• Simple and convenient for both projects and investors.

Cons:

• High fees, as exchanges may take a significant percentage of the token supply.

• Regulatory uncertainty around token sales.

• Centralized, relying on a single exchange or platform.

• Limited transparency due to the off-chain nature of exchanges

3. LBP (Liquidity Bootstrapping Pool)

Liquidity Bootstrapping Pools (LBPs) are a popular DeFi launch mechanism designed to generate liquidity for new tokens on decentralized exchanges. They operate using a token pool with a dynamic pricing curve that starts at a relatively high price and gradually decreases.

Users can purchase tokens at various price points, which adjusts the shape of the curve. This approach allows participants to enter the market at their preferred time, promoting an inclusive token distribution and enabling more efficient price discovery.

LBP Pros & Cons

Pros:

• Promotes fair distribution through a gradual price decrease.

• Enables community-driven price discovery.

• Provides incentives for early buyers.

• Allows controlled token supply.

Cons:

• More complex than traditional token sales.

• Participants face timing risks.

• Potential for price volatility during the LBP.

4. Alternative Launch Models

Many alternative launch mechanisms have been developed to suit different projects depending on their specific goals and requirements. OruxAI integrates these approaches to provide maximum flexibility and continues to innovate by incorporating additional launch mechanisms, which are detailed in our Modular Launches section.

Some of these alternative mechanisms include:

• Fair Auctions: Tokens are distributed through a transparent auction with competitive bidding, ensuring equal opportunity and a uniform final token price.

• Dutch Auctions: Launch begins at a high price that gradually decreases until reaching a buy-in price, promoting fair distribution and efficient price discovery.

• Liquid Auctions (or Liquidity Bootstrapping Auction): A subset of LBPs where contributions can be made to either side of the liquidity pool. Token prices are determined by the ratio of contributions, and users can lock their position for a set period, receiving new tokens proportionally at launch.

• Lockdrops: Participants lock a certain token or LP position for a defined period, receiving new tokens proportionally at launch. This encourages long-term commitment and community engagement.