New Token Launches Face Sharp Declines Ahead of Airdrop Season
Recent token launches have experienced significant declines, raising concerns about the token generation event (TGE) model before upcoming high-profile airdrops.
- CAMP, a native token of an AI-focused layer 1 blockchain, has declined by 88% since its launch last month.
- DoubleZero's 2Z lost 60% of its value in eight days.
- XAN from Anoma fell by 60% in a week.
- XPL dropped below its TGE price amid negative sentiment regarding alleged team token sales, which the founder refuted.
These declines contrast with last year's success stories like HYPE, which increased by 400% after debuting at $6.00.
Reasons for Poor Performance
- Excessive pre-launch hype causes users to cash out quickly instead of holding for long-term gains.
- Poor tokenomics, as seen with XPL, where $813 million in "ecosystem and growth" tokens allegedly pressured the market.
Airdrop Season Outlook
- Upcoming airdrops from major projects like MetaMask, OpenSea, and Monad could face challenges if new tokens continue underperforming.
- OpenSea users may seek quick returns due to past high fees, potentially affecting demand and supply balance.