Key Takeaways from Mathias Beke’s Keynote and Panel | Hack Seasons Conference
The Hack Seasons Conference in Brussels, hosted by Metaverse Post and Cryptomeria, gathered crypto enthusiasts and industry experts to explore decentralized exchanges (DEXs). Mathias Beke, Co-founder and CTO of Kairon Labs, was invited as a keynote speaker and panelist to discuss the critical roles of liquidity and trading volume in successful token launches.
He was also joined by Gabriele Zennaro, Partnership Lead at Outlier Ventures, Jenny Cheng, VP of Investment at Animoca Ventures, and Ray Xiao, Senior Director at IOSG Ventures.
Liquidity: A Pillar of Token Success
Beke stressed that liquidity is vital for the success of a token launch. Liquidity means the ease with which assets can be traded without causing significant price changes. High liquidity ensures quick and efficient trading of tokens, which is crucial for attracting and keeping investors. Key benefits of strong liquidity include:
- Reduced Price Fluctuations: Stability in token prices makes them more appealing to investors.
- Improved Trading Efficiency: Easy execution of buy and sell orders enhances user satisfaction.
- Market Confidence: High liquidity reflects strong interest and trust in the token, encouraging further investment.
Liquidity vs. Volume: Both Are Crucial
In his speech, Beke also explained the significance of trading volume. Trading volume, the number of tokens traded over a period, indicates market interest and activity. While liquidity is crucial, understanding trading volume helps gauge how many people engage with the token. High trading volume suggests strong market acceptance and can enhance a token’s credibility.
Assessing Liquidity Management
Beke provided practical advice for evaluating whether a token’s liquidity is well-managed:
Bid and Ask Spreads: Small differences between the highest bid and lowest ask prices indicate a competitive and liquid market.
Consistent Trading Volume: Regular high trading volume signals continuous market interest.
Order Book Depth: Keeping the depth within 2% of the best bid and ask prices ensures market stability and liquidity.
Mathias Beke’s keynote at the Hack Seasons Conference highlighted the critical role of liquidity and volume in successful token launches. He also emphasized the need for ethical market making in this space.
Watch Mathias Beke talk about ethical market making here:
