Token launches today focus on creating sustainable businesses rather than generating hype alone, as stated in an opinion piece.
In the dynamic world of cryptocurrency, the landscape is undergoing a significant transformation. Gone are the days of hype-driven launches and speculative assets; today, successful projects are emphasizing real-world utility, user engagement, and sustainable economics.
One prime example of this shift is Hyperliquid, a profitable exchange that amassed a staggering $250 billion in trading volume and $55 million in monthly revenue before their token even existed. The key to their success lies in their focus on building a strong product and business, rather than out-hyping competitors.
Similarly, Pendle, a platform for trading futures yields on DeFi protocols, generated $4 million in monthly revenue and $5 billion in total value locked before their token was noticed. These figures underscore the importance of demonstrable commercial utility and real user adoption.
The current best practices for launching a token in the crypto industry underscore these principles. Successful token launches now focus on integrating tokens as functional components within platforms, offering clear benefits such as governance rights, payment capabilities, staking rewards, fee discounts, or revenue sharing tied to actual business performance.
Key elements of these best practices include building the product or ecosystem prior to issuing tokens, ensuring a viable use case and real users upon launch. Tokens act as growth accelerators rather than speculative assets. Moreover, tokens should have purposeful roles, such as enabling governance, facilitating payments and transactions, granting access to services, or representing real-world assets.
Reward mechanisms tied to actual revenue, buybacks, or discount structures also motivate long-term holding and align token value with business success, reducing volatility caused by speculation. Prioritizing regulatory compliance helps build investor trust and attract institutional participation.
Focusing on retail adoption and usability is another crucial aspect. Supporting seamless cross-chain wallets and enhancing technical performance improves user experience and broadens appeal beyond early adopters or speculators.
Maintaining transparent and staged token sales, with clear pricing models, combined with substantial funding milestones and acquisitions, can signal serious commitment to utility and adoption.
Investors are now prioritizing utility and real commercial value over hype and speculative future technology. This is evident in the rise of projects like Pump.fun, which built a strong product-market fit, generating $400 million in revenue, but had a relatively high team and investor allocation in their token launch.
The token launch landscape in the current context resembles that of a TradFi IPO. Revenue sharing with stakers, fee discounts for long-term holders, and protocol buyback programs using network fees have become common for creating value for token holders.
In the evolving web3 landscape, individuals like Ignacio Palomera, founder and CEO of Bondex, bring a deep understanding of financial systems and strategic operations. Bondex is a web3 professional network and talent management platform that has rapidly grown to attract millions of downloads and active users. The platform offers token incentives for job referrals and fundamentally rethinks how individuals exchange time, money, and skills in a peer-to-peer fashion.
In conclusion, the industry has shifted from hype-driven launches to projects demonstrating real-world utility, user engagement, and sustainable economics to establish tokens as valuable ecosystem components rather than mere speculative assets.
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