Move endless X thread and VC endorsement. A deep dive in the token launching the dynamic group dynamics shows that tokens debuts are more about the cold, difficult foundation and less about hype and marketing.
The firm reviewed more than 50,000 data points related to 40 crypto token launch in the first four months of the year to get the following conclusions:
The contact is not all
The popular notion of the crypto community is that the increase in social media activity translates into a successful token launch. But the Simplicity Group has no statistical relationship between social media adventures, especially responses, posts and likes to X (dating twitter) and token price performance a week after launch.
Infact, the research points on the negative relationship between interactions and returns a week and one month after the launch-which indicates that more responses, repost and the project like, the worst price has been made. “It is a statistic that is insignificant in relation, and not caustion, however something to keep in mind,” the report said.
However, projects with greater coherence leading to the token event event (Tge)As a set of data of itself, there was a stronger one -month performance that was likely due to the broader base of consciousness.
The initial check of reality cap reality
Research reviews the relationship between the initial market cap of the market (IMC) and initial circulating -switch supply (specified as initial float) and the price performance one-week and one month after the TGE.
It found a strong negative correlation between the IMC of a token and its price performance. “For every 2.7x increase in IMC, there is approximately 1.37% collapse on 1-week return and a 1.56% collapse in the 1-month return,” the report said.
The report is further noted that a lower IMC is usually translated into a price pump in the first week, with the strength lasting at least a month.
Meanwhile, the initial circulating supply was not related to predicting a week-long price performance, the report stated, indicating that the total dollar amount of initial objects floated more than the supply percentage locked in the launch.
Trade volumes
The report collected volumes on TGE, one week after the launch and one month following the launch and evaluated the price performance.
At first the two appeared in vain, but the relationship of Spearman’s rank showed that tokens that experienced a collapse in volume tend to perform in price terms.
“In simpler terms, while it seems that the performance is not successively tied to quantity, tokens with higher retention volume tend to (to) perform better, even if the relationship between the numbers is not linear,” the report mentioned.
Volume maintenance, calculated as a ratio, refers to how much volume is maintained in one month following the TGE.
Big money does not guarantee success
Finally, the report reviews a popular belief that a good fund supported by Big VCs is reserved for success. The report, however, has been mentioned, “Raising more money does not mean that you will have a better token, as the excess benefits of more cash are not, statistics speaking, more than costs.”
The study was found little by no significant statistics relationship between the amount of money raised by a project and its token price performance.
Key takeaways
Simplicity Group’s volume review showed that the content-driven content and the user’s real interaction were more than just the driving marketing marketing efforts of the sustainable token success.
The study cited the bubblemaps and Kaito as organic projects that form content related to their main product function, which shows the same relationship and positive price performance.
In contrast, those who rely on heavy memes, promotional campaigns and common call-to-action have seen a sharp collapse in contact immediately following the TGE, leading to weaker price results. The report also emphasized the need for a similar and real tone of all communications, which aligned with projects at the brand’s general target, used a case and target audience.
Finally, it features the critical role of transparency and acessible technical updates on developing credibility.
Denial: Parts of this article were formed with the help from AI tools and our editorial team reviewed to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s entire AI policy.
