Introduction: Why Perpetual Listings at TGE Can Ruin Token Launches

Every token launch is a critical moment that shapes the future trajectory of a project. Token teams spend months or even years designing tokenomics, managing treasury strategies, building community momentum, and negotiating exchange listings. When the Token Generation Event, or TGE, finally arrives, the single most important objective becomes clear: achieve stable price discovery, protect against early volatility, and lay the groundwork for sustainable long-term growth.

Yet, in the rush to cover every perceived market need, many projects make a strategic mistake that can severely undermine these goals. They approve a Perpetual Futures, or Perps, market at TGE. While perpetual swaps are an essential part of mature crypto markets, offering sophisticated traders leverage and hedging tools, the decision to introduce them at launch often backfires for most projects.

The truth is simple. Unless a project is launching at the scale of a major Layer 1 like Sui, Aptos, or Arbitrum, introducing a Perps market at TGE is more likely to create problems than to solve them. This article breaks down exactly why.

The Hidden Risks of Perps at Token Generation Events

The primary purpose of carefully designed tokenomics is to control sell pressure at launch. Founders intentionally structure vesting schedules, cliff unlocks, and limited circulating supply to ensure that tokens are scarce in the market immediately after TGE. This scarcity is critical because it drives organic demand and enables a healthy price discovery process.

When supply is artificially constrained, early buyers compete for limited tokens, which tends to support upward price movement. This initial growth fuels community excitement, attracts further buyers, and validates the project’s perceived value.

The moment a Perps market is introduced, however, this careful balance is destroyed. Perpetual swaps allow anyone to short a token without ever owning it. This effectively introduces synthetic supply into the market. Regardless of how carefully the project has limited actual token circulation, the derivatives market suddenly behaves as if there is much more supply than there really is.

This artificial supply dynamic fundamentally undermines the launch tokenomics. Traders and funds can open massive short positions against the token without owning or borrowing tokens from the spot market. The careful mechanisms designed to control float and incentivize holding are rendered ineffective in the face of leveraged synthetic selling pressure.

How Perps Undermine Tokenomics and Price Discovery

The introduction of a Perps market at TGE immediately limits the potential upside for the token. Instead of allowing price to move naturally based on organic demand in the spot market, the price action is now heavily influenced by traders betting against the token with leverage.

The psychological dynamics compound this problem. It is well-known across crypto markets that tokens often experience volatility shortly after launch, with price surges often followed by corrections as initial hype fades or unlocks begin. Traders anticipate this pattern and rush to open short positions as soon as the Perps market is live.

This expectation becomes a self-fulfilling prophecy. Whether the price was fundamentally destined to decline or not, the presence of leveraged short interest ensures significant sell pressure from the outset. Traders short in anticipation of a dump, and the act of shorting itself contributes to that outcome.

On top of that, spot market liquidity suffers. Market makers, who are responsible for maintaining order book depth and price stability, are now forced to hedge the risk created by rising open interest in the derivatives market. The capital that would otherwise support healthy spot liquidity gets diverted toward hedging Perps exposure. As a result, the spot order books thin out, spreads widen, and volatility increases. This in turn drives more speculative Perps trading, further deepening the cycle of instability.

The Sell Pressure Problem: Perps vs. Spot Liquidity

A particularly alarming development in the industry is the rise of exchanges that list Perps without the consent of the token project. MEXC is a leading example of this practice. Projects can wake up to discover that a Perps market has been launched on their token, despite the fact that they never approved it, never discussed liquidity provisioning for it, and never agreed to the terms.

When this happens, the project has zero control over the derivatives exposure suddenly applied to their token. They cannot influence the timing, cannot manage the liquidity dynamics, and cannot control the cascading risk this introduces to their launch.

This forced listing practice is highly detrimental to early price discovery. It undermines months of tokenomics planning, liquidity modeling, and carefully negotiated spot exchange strategies. Projects must be aware that even if they do not approve a Perps listing, certain exchanges may move forward with one regardless.

The Danger of Forced Perps Listings by Exchanges

There are certainly cases where a Perps market at TGE makes sense. If your project is launching at the scale of a major Layer 1 like Sui or Aptos, with a fully global rollout, institutional-level liquidity support, and simultaneous listings on ten or more top-tier centralized exchanges, then Perps are expected. In fact, they become a necessary component of price discovery for a token of that magnitude. Institutional traders require derivatives to hedge, exchanges expect it as part of a mature asset profile, and the liquidity is deep enough to absorb the additional volatility.

For the vast majority of other launches, this is not the case. If your token is listing on three to five exchanges with a carefully controlled circulating supply, a Perps listing introduces unnecessary risk. Your launch strategy is likely centered around building robust spot liquidity, fostering a healthy and engaged community, and supporting a price trajectory that reflects long-term value creation rather than short-term speculation.

When leveraged derivatives are introduced to a token that is not ready for it, the result is almost always increased volatility, suppressed price growth, and negative sentiment from early buyers who see the token struggle under manufactured sell pressure.

Should You List Perps at TGE? A Framework for Decision Making

As a crypto market maker and liquidity provider operating across CEX, DEX, and hybrid markets, Enflux has witnessed this dynamic repeatedly. We have supported dozens of token launches and have seen clear patterns emerge.

Tokens that skip Perps at TGE consistently achieve healthier price discovery, stronger spot liquidity, and greater resilience during their first weeks of trading. These tokens tend to attract a higher percentage of long-term holders, maintain tighter spreads, and avoid the perception that the token is under attack by speculative traders.

On the other hand, tokens that allow or suffer from premature Perps listings frequently see their upside capped. Price discovery becomes unstable, order books become fragile, and the reputation of the project suffers as community members question the sudden and persistent downward pressure.

Perps are not inherently harmful. They are a powerful tool when deployed correctly. But the timing of their introduction matters immensely. When used prematurely, they create problems. When introduced after a token has built sufficient spot liquidity, absorbed its initial volatility, and proven price stability, they can become a healthy part of a token’s overall liquidity stack.

The Enflux Approach to Healthy Token Launch Liquidity

The optimal approach is to focus on building the spot market first. This means prioritizing stable price discovery through deep and healthy order books, supported by transparent market making and robust liquidity strategies.

Managing decentralized exchange liquidity is also critical. AMM pools must be actively managed to ensure that on-chain pricing is accurate, slippage is controlled, and volatility is minimized.

Negotiating carefully with centralized exchanges is equally important. Projects should push back on premature Perp listings whenever possible and understand which exchanges are more likely to force listings without consent.

For projects that need liquidity but want to avoid the pitfalls of traditional token loans or unrestricted market making, Enflux offers KPI-bound loan models. These are liquidity solutions tied to transparent performance metrics, ensuring that liquidity provision aligns with project goals without exposing the token to uncontrolled risk.

Perps should be introduced later, on the project’s terms, ideally when the spot market is mature, circulating supply has grown, and the token is capable of absorbing leveraged derivatives exposure without destabilizing price action.

What to Do Instead: Focus on Spot, Not Derivatives

Enflux is more than a crypto market maker. We are a strategic liquidity partner that provides a complete stack of solutions tailored to modern token launches.

Our retainer-based market making model is fully transparent and KPI-aligned, free from hidden spread capture or predatory PnL models. We offer active DEX liquidity management, including strategies for AMMs and decentralized order books. Our KPI-bound loan models provide scalable liquidity without forcing projects into rigid or exploitative terms.

For teams that want to manage their own liquidity infrastructure directly, we offer Enflux Terminal, a self-service agentic market making platform. This platform empowers token issuers with full control over liquidity provisioning, risk management, and execution parameters across both centralized and decentralized markets.

Additionally, our launch advisory services help projects navigate every aspect of exchange negotiations, liquidity structuring, and the timing of derivatives like Perps.

Launch With Confidence: How Enflux Helps Token Projects Succeed

A Perpetual market at TGE is not automatically a growth driver. For most projects, it introduces a set of risks that undermine the very foundations of price discovery and early market stability.

Unless your token is launching with the scale and resources of a major Layer 1, you are likely better served by delaying Perps until the spot market is stable, the community is engaged, and liquidity can support leveraged derivatives without destabilizing effects.

Perps are not inherently bad, but the timing of their introduction determines whether they are a powerful tool or a serious liability.

FAQ: Perps at TGE, Token Launches, and Market Making

What is a Perpetual Futures (Perps) market in crypto?

A Perpetual Futures market, often called Perps, is a type of derivative that allows traders to speculate on the price of an asset without owning it. Unlike traditional futures, Perps have no expiration date and use funding rates to keep prices aligned with the spot market.

Why do Perps create problems for token launches?

Perps introduce synthetic supply into the market. This allows traders to short a token without owning it, which adds significant selling pressure. This undermines tokenomics designed to limit early supply and can destabilize price discovery during a token’s launch.

Should every token have a Perps market at TGE?

No. Only very large-scale launches with deep liquidity, such as major Layer 1 blockchains, should consider Perps at TGE. Most projects benefit from delaying Perps until the spot market is mature and stable.

What happens if an exchange lists a Perps market without project approval?

Some exchanges, like MEXC, may list Perps without the consent of the token issuer. This forces the token into a derivatives market the project did not plan for, introducing unmanaged risks and undermining the launch strategy.

How can token projects avoid the risks associated with Perps at TGE?

The best approach is to focus on building strong spot liquidity first. This involves deep order books, active market making, and stable tokenomics. Projects should also negotiate carefully with exchanges to delay Perps until the token can handle it.

Are Perps always bad for tokens?

No. Perps are a valuable part of mature markets. When introduced after a token has grown its circulating supply and stabilized its price action, Perps provide hedging tools for traders and improve overall liquidity. The problem comes from introducing them too early.

How does Enflux help with token launches?

Enflux provides transparent, KPI-bound market making, active DEX liquidity management, and a self-service agentic market making platform called Enflux Terminal. We help projects navigate exchange negotiations, liquidity strategy, and the right timing for Perps and other derivatives.

Can Enflux prevent forced Perps listings?

While no project can fully prevent exchanges from listing Perps unilaterally, Enflux helps mitigate the impact by optimizing liquidity, preparing the spot market, and advising on defensive strategies to manage derivatives exposure.

When is the right time to introduce Perps for a token?

The right time is after the token has established deep spot liquidity, absorbed early volatility, built sufficient circulating supply, and demonstrated price stability. At that point, Perps can enhance liquidity without destabilizing the market.

How can I work with Enflux for my token launch?

Contact the Enflux team through our website. We offer customized liquidity solutions, advisory services, and tools to help your token achieve stable price discovery and long-term success.

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Contact Enflux

If you are preparing for your token launch and want a crypto market maker that understands the nuances of liquidity, tokenomics, derivatives, and market structure, contact Enflux. Our liquidity solutions are transparent, performance-driven, and engineered to help your token succeed.

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