// GLOSSARY -- DEFI

What is Token Launch?

1 min read Updated

A token launch is the process of creating and distributing a new cryptocurrency token — encompassing smart contract deployment, initial liquidity provision, distribution mechanics, and market listing.

WHY IT MATTERS

Token launches have evolved dramatically. From ICOs (2017) to IEOs to IDOs to fair launches to bonding curves (pump.fun). Each era brought new mechanics for how tokens enter the market and find initial price discovery.

Modern launches often use: bonding curves (automatic price discovery), liquidity bootstrapping pools (gradually shifting weight), or direct liquidity provision (team adds initial liquidity to a DEX).

The regulatory landscape is complex — many token launches may constitute securities offerings. Projects navigate this through fair launches (no pre-sale), utility-focused tokenomics, and geographic restrictions.

FREQUENTLY ASKED QUESTIONS

What is a fair launch?
A token distribution with no pre-sale, no insider allocation — everyone gets the same opportunity to acquire tokens. Often through mining/staking or a public bonding curve.
What's the risk of new token launches?
Rug pulls, lack of liquidity, smart contract bugs, and regulatory risk. Most new tokens fail. Due diligence on team, code, and tokenomics is essential.
How do bonding curve launches work?
Tokens are minted from a bonding curve — price increases as supply grows. Early buyers get lower prices. Often used to bootstrap initial price discovery before migrating to a DEX.

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