We’re Crypto Market Makers: What We Actually Do at Kairon Labs

What we actually do at Kairon Labs
Calendar IconAug 2022Clock Icon9 mins
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"Market makers perform wash trading." "Market making is simply running a trading bot." If we only get one Satoshi for every time we hear these (unfounded) statements, we'd probably retire early and buy an island somewhere in the Caribbean.

Because most service providers in crypto seem to operate in mysterious, elusive ways, it's tough to figure out which provider offers what service and what the supposed benefits are. No wonder there are misconceptions about market making! One of the main goals here at Kairon Labs is to nurture open communication and transparency - in everything we do. Our core business is market making, but other aspects besides purely algorithmic trading are involved. We offer two types of services, depending on your needs:

  1. Full-stack go-to-market strategies and execution for projects looking to launch their own token or cryptocurrency
  2. Holistic service offering for existing projects that are already trading.

We'll explain each service, our approach, and the value we bring. Let's dive in!

Full support with launching your token or cryptocurrency

Did you know that as of August 31, 2022, there are over 18,465 digital currencies in existence? The ICO boom and subsequent IEO hype are over, but projects still reach out to us weekly with requests to get their new token to market.

However, we do notice that the quality of teams and their ideas have vastly improved, while the funding in most cases has sharply declined. We generally see this as a good thing for the future of our beloved crypto and blockchain industry. Often these teams and founders are focused on their product and have a particular vision. They want their token or cryptocurrency to have a specific market capitalization, be listed on the top exchanges, engage with their community, etc. However, most projects soon realize this journey will not be easy — nor straightforward.

The fact is that most project teams have never launched a token before, so they lack the knowledge and insights. Here's where we step in. Our diverse and experienced team offers guidance based on our best practices. Our approach is very personal. The communication is transparent, we don't promise what we can't deliver, and we certainly don't do any fast schemes or market manipulations. After initial research, we ask our clients all the key questions so we understand their goals and challenges. Then we develop a complete and custom go-to-market strategy for their token or cryptocurrency. When creating the strategy, we focus on 3 main factors:

  1. Expectations and budget: what is the primary goal, what are the KPIs for the client
  2. Timeline: how far along is the project itself, and how quick do they want to go to market
  3. Macro market conditions: what part of the market cycle are we in

A well-thought-out GTM strategy for any token or cryptocurrency revolves around aligning the following key pillars:

  1. Exchange Listings
    1. Who are the legitimate exchanges?
    2. What are the optimal trading pairs?
    3. What are the listing requirements per exchange (legal opinion letter, smart contract audit, listing fees,…)?
  2. Market-Making
    1. How much inventory is needed?
    2. Trading strategy (keeping vesting schedules, airdrops, news,…)?
    3. Macro market timing
  3. PR
    1. Message/image building
    2. Distribution over key channels
  4. Marketing
    1. Guerilla marketing
    2. Influencer marketing
  5. Community Engagement
    1. Maintaining and enhancing positive sentiment
    2. Expanding the community

At Kairon Labs, on the management and consultancy side, we can coordinate and implement the whole go-to-market strategy. On the execution level, we take care of the in-house market-making and the exchange listings. The PR, marketing, and community solutions we do not offer in-house, but we rely on trusted and specialized partners. We’ve worked with these partners for years, successfully cooperating and executing different projects.

Holistic service for projects that are already trading

As we mentioned, many blockchain projects already have their own token or cryptocurrency already trading. The competition is tough; everyone is eager to get under the spotlight to gain market share and increase adoption.

Unfortunately, most projects have the tendency to fade out after a while. 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. 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.

At Kairon Labs, we add value in many different ways for these projects by coming up with a tailored plan that consists of the following key pillars:

1. Exchange listings

As market makers, we have great personal connections to the exchanges we work with. After all, exchanges are where we connect to and execute trades 24/7. Through these personal connections, we are able to help our clients achieve quicker and more cost-efficient listings. Exchanges love projects that take their liquidity management seriously.

There are countless reasons why your project could benefit from a new exchange listing. Some projects have been listed on smaller exchanges for what seems like forever and never got a chance to shine on a more significant, legitimate exchange with a broader user base. Other projects have been listed on an exchange with a western user base but would like more exposure to the Asian community.

For this reason, listing on a larger, legitimate exchange can be challenging for projects in a downward spiral regarding 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 will not be very receptive.

This brings us to point number two…

2. Market-Making

Market-making or liquidity provisioning is our core business. The goal of hiring a designated market maker for your token or cryptocurrency should be about nurturing a healthy market where buyers and sellers meet and have optimal price discovery while minimizing slippage when executing trades.

To achieve this vision of a healthy market, the 2 most essential parts of a legitimate market-making strategy are:

  1. Order book depth (how much liquidity is there in the order book at certain levels)
  2. 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. Increased confidence in your market will often result in appreciation of your token price.

3. PR, marketing, and community engagement

Premier exchange listings and efficient market-making strategies are nothing without an online buzz and (viral) marketing campaign to back them. We work with trusted 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 combining everything from activating influencers to engaging grassroots communities via Telegram, Twitter, Discord, Reddit, etc.

Projects that are already trading have to stay relevant. Retaining and expanding the attention of the community should be their top priority. After all, the people in their communities make up the token holders, making them invaluable stakeholders. When the community doesn't care (or stops caring!), the volumes will drop together with the token price and market capitalization.

Our mission is to help everyone understand crypto, support innovative projects, and design a future where blockchain technology will empower people to do extraordinary things. Thanks to our global team of financial experts, crypto enthusiasts, and innovative developers, we are able to propose the most suitable solution for your business case. Drop us a line, and let's talk about making your project a roaring success!

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Kairon Labs provides upscale market-making services for digital asset issuers and token projects, leveraging cutting-edge algorithmic trading software that is integrated into over 100+ exchanges with 24/7 global market coverage. Get a free first consult with us now at kaironlabs.com/contact