The traditional approach to launching crypto tokens is no longer effective, according to 21Shares researcher Darius Moukhtarzade. He explained that strategies built around high fully diluted valuations, limited circulating supply, and governance driven meme style tokens are no longer delivering results.
A key reason behind this shift is what he described as a growing gap between market sentiment and project fundamentals.
On the fundamentals side, the outlook remains strong. The global user base continues to expand, regulatory clarity is improving, institutional participation is increasing, and infrastructure is becoming more scalable, all of which support long term adoption.
However, market sentiment tells a different story. Investor confidence has weakened significantly, reflected in high levels of fear, repeated failures of token generation events, and capital dilution caused by the rapid growth in the number of new tokens entering the market.
Other factors have also contributed to weaker demand, including a shift in investor attention toward artificial intelligence and lingering distrust from past projects that prioritized short term gains over sustainable value. As a result, even fundamentally solid projects are struggling to attract liquidity and maintain investor interest, leading to underwhelming token launches despite favorable broader conditions.
A New Approach to Token Design
To address these challenges, Moukhtarzade proposed a new framework focused on encouraging long term holding rather than quick selling.
He pointed out that many current token models create a situation where investors rush to sell early to secure profits. Instead, the new approach emphasizes aligning the incentives of developers, investors, and users so that all parties benefit as the project grows over time.
This framework also highlights the importance of linking token value to real economic activity such as revenue generation rather than speculation. It suggests distributing value directly to holders, for example through revenue sharing mechanisms, and treating token ownership as active participation in the network’s growth. In this model, longer holding leads to greater contribution and increased rewards.
The Reality of Token Launches in 2025
Token launches throughout 2025 have largely disappointed. Data shows that about 85 percent of projects are trading below their initial token generation valuation, meaning most investors are currently at a loss. Only a small portion of tokens remain profitable.
Moukhtarzade identified several common mistakes behind these weak performances. One major issue is overpricing, where projects launch with inflated valuations despite having a limited supply available to the public. This creates a disconnect between private investor expectations and what the broader market is willing to support.
Another factor is overconfidence among founders, which leads some teams to launch during unfavorable market conditions when demand is already low. In addition, many projects underestimate the level of selling pressure at launch, as early participants such as airdrop recipients, initial investors, and liquidity providers often sell quickly to lock in gains.
Finally, some projects enter the market too early, before achieving product market fit or generating sustainable revenue. In such cases, the token ends up replacing real progress rather than supporting it, which further weakens long term performance.#crypto#cryptonews https://coinsignals.net https://t.me/coinsignalpublic
