Great article — potential solution (or a brain fart…) Question: if you create your own tokens, what if you had a reserve of those tokens (say, 45% of total supply) so that you could support the exchange in three ways:
- Control the supply, so don’t sell too many of your tokens for the ICO event (perhaps about 35% of total supply), and therefore the exchanges are not flooded with tokens going nowhere when demand might be weakest because you are yet release the product/service. Be smart with your own liquidity — by keeping other currencies on hand (i.e. ETH) to be a market maker — see point 3. Also have a business model which can generate FIAT.
- Have a “retail price” which is higher than the prices on the exchange, so your community (assuming you have one, a use for the token and desirable offer) — wants to buy on the exchange and then come into your economy to use the token (assuming to buy your service/goods). You gain tokens and can choose to hold or sell those tokens to control overall supply
- When needed be the market maker, purchase back your own tokens from point 1, adding to the reserve, or introducing more tokens into the exchange to increase volume, when volume is needed.
If you add into this dynamic, a business model which actually creates demand for a product/service attached to the token, you have a strong hold on the supply/demand equation and can help the listed token to grow in price, because the exchange is the cheapest place to buy and with demand, you can have confidence in selling.
Would love to know your thoughts! Did I make any sense?