Several recent token launches have seen dramatic decline that brings to the Token Generation Event (TGE) Meta in doubt about a number of high -profile airdrops.
Camp, the native token of an AI-focused layer 1 blockchain, is now down by 88% since it was introduced last month, while Doublezero’s 2z has lost 60% of its value in just eight days.
There were also remarkable losses for Anomas Xan, down by 60% in a week. XPL, arguably one of the most hyped projects of the year, fell during its TGE award on Friday in the middle of a wave of negative mood around alleged founding of team -token sales, a claim that the company’s founder rejected.
Price action is a sharp contrast to last year when projects such as Hype debuted at $ 6.00 and rose by 400% in the following month.
Why don’t new tokens fail to impress?
There are several catalysts behind the poor performance of newly launched tokens; One is simply to breed the hype before launch, which means that when a token eventually comes out, users are generally happy to get a return on their investment as opposed to doubling.
Another reason is Tokenomics, XPL’s situation has been attributed to $ 813 million value of “ecosystem and growth” tookens, which was allegedly sold through market producers, which resulted in pressure on the price and outweighs retail investor’s demand.
AirDrop season doomed to fail?
Over the coming months, crypto trucks will receive airdrops from Metamask, OpenSea and Monad.
These projects are massive in their respective areas; Metamask is the most commonly used crypto wallet used by millions, while OpenSea surpassed from being the largest non-spoken token (NFT) exchange to becoming an onchain trading platform, and Monad is a hyped layer 1 blockchain that will aircraft next week.
But if the 2025’s new token performance is to repeat itself, these respective Juggernauts may be able to fight to maintain a healthy demand level outweighs the supply, especially in the event of a project like OpenSea, where users who spent hundreds of thousands of dollars in fees in 2021 are waiting for a slip back before they are supposed to pay.
