Why most crypto tokens fail—and how to avoid it

The crypto industry has seen millions of token launches—some skyrocketing to success, others fading into obscurity. Behind every launch is a complex web of decisions involving strategy, fundraising, market conditions, and execution. Yet, for many founders, navigating this process is a minefield of misinformation, misaligned incentives, and hidden pitfalls.

Alexander Rees-Evans wants to change that. With years of experience advising projects, working with exchanges, and observing the mistakes that have plagued token launches, he set out to create a definitive guide. His book, How to Launch a Token, is the first of its kind—a structured, step-by-step manual to help founders avoid the common traps and ensure a sustainable, successful launch.

Rees-Evans is deeply embedded in the crypto space, working closely with startups, exchanges, and institutional investors on various aspects of token launches, including fundraising, liquidity management, and market strategies. The Crypto Radio sat down with him to discuss why he wrote the book, the biggest mistakes founders make, and what really goes on behind the scenes of the token launch industry.

“It's all about the power that you have behind you… buying pressure,” he said. “And maybe you have more buying pressure than selling pressure. But to be able to get to that, you need to create what we call perceived value.”

From hidden fees and kickbacks to market timing and fundraising strategies, How to Launch a Token exposes the realities of the industry while providing a clear framework for success. Whether you're a startup founder, investor, or simply curious about the mechanics of crypto, this book aims to demystify one of the most critical aspects of the web3 ecosystem.

The fundamentals of launching a token

Despite the fast-moving nature of the crypto industry, Rees-Evans believes the core principles of launching a successful token remain the same. 

“No matter how diverse or how the industry becomes as it expands, the underlying concept of economy, which by supply and demand… remains relatively the same,” he said.

Rees-Evans wrote the book because he was frustrated by the misinformation that circulates among founders. He has witnessed firsthand how inexperienced teams fall prey to bad advice from consultants and advisors who often have their own financial incentives.

"I've been on a tremendous amount of calls with founders, advisors, CEOs… (and they all say) that they've got the best next year that's going to revolutionize the world," Rees-Evans said, narrating how he’s seen them make the same mistakes again and again. 

The book covers every stage of the process, from laying the groundwork and raising capital to executing a launch that maximizes liquidity, engagement, and long-term growth. While the industry evolves rapidly, Rees-Evans argues that the core economic principles of token launches are timeless.

Market conditions and timing matter

A key takeaway from How to Launch a Token is that one of the biggest factors influencing a token’s success is timing. Understanding market cycles, liquidity trends, and investor sentiment can make or break a launch.

"If you're building a project in a bear market compared to a bull market, it's completely different. It's a whole different ball game," Rees-Evans emphasized.

Fundraising is another major hurdle. While securing investment is critical, Rees-Evans emphasizes that the source of funding is just as important as the amount raised. Having established venture capital firms on a project's cap table signals credibility and makes it easier to attract further investment. 

Conversely, starting with smaller, lesser-known investors can present challenges when trying to scale funding efforts later on.

He also highlights common launch-day mistakes, including market makers failing to activate liquidity scripts, incorrect token pricing, and unforeseen technical issues that can tank a project before it even gains traction.

"I've seen launches where the market maker forgot to activate the scripts,” he said. “The project went to market, the token launched on the exchange, and all of a sudden, boom, no monitor. They activated the script. Maybe two hours later, they were $200,000 down.”

The role of influencers and community building

The rise of crypto influencers and key opinion leaders (KOLs) has made marketing an essential part of token launches, but Rees-Evans warns that not all KOLs operate with integrity.

“There are multiple types of K wells, but the main ones are NFT KOLs than token KOLs. They're very different as a whole,” he explained. 

Non-fungible tokens (NFT) KOLs and token KOLs serve different roles in crypto marketing. NFT KOLs are embedded in high-value communities, focusing on project vision and organic engagement, while token KOLs are more promotion-driven, often emphasizing financial opportunities. Rees-Evans advises using NFT KOLs for long-term community building and token KOLs for strategic exposure near launch.

To navigate this, he advises projects to carefully manage influencer partnerships and set clear KPIs to ensure accountability. Poorly managed influencer strategies can lead to misalignment and wasted resources. Beyond influencers, he emphasizes the importance of cultivating a strong community. 

The most valuable supporters are those who join early because they believe in the project rather than chasing quick profits. Organic community building is a long-term effort that separates sustainable projects from short-lived hype cycles.

Short-term building is holding the industry back

While How to Launch a Token focuses on the mechanics of token creation, Rees-Evans also touches on broader industry issues, from regulatory uncertainty to the role of decentralized exchanges and liquidity providers. He believes that one of the biggest challenges facing crypto today is the prevalence of short-term thinking—too many projects prioritize quick financial gains over long-term sustainability.

He also sees memecoins as a double-edged sword. While they drive engagement and bring new participants into the space, they often divert liquidity away from projects focused on real innovation. This tension between speculation and utility remains a central debate in the industry. However, he recognized its contribution to crypto, which is community.

“What they have brought to the table is a new way of, I would say, fostering and creating a community,” he said. “And I think it's the culture behind the memecoins already. That's what it was as well. It was the culture that was brought and that was really placed at the forefront of memecoins.

Looking ahead, Rees-Evans believes that crypto needs better transparency and education to mature as an industry. How to Launch a Token is his contribution to that effort, providing founders with a realistic, no-nonsense guide to navigating one of the most complex aspects of the web3 ecosystem.

 

Listen to the whole interview on The Crypto Radio's live player or in The Pulse podcast.