Many recently -token launching have seen dramatic drawdowns, bringing to the token Generation Event (TGE) Meta to ask a question in advance of a number of high -profile airdrops.
Camp, the native token of a blockchain focused on AI, has now dropped 88% since it was introduced last month, while Doublezero’s 2z lost 60% of its value in just eight days.
There have also been noticeable losses for Anoma’s Xan, down 60% a week. The XPL, perhaps one of the most -paired projects of the year, fell under the TGE price this Friday amid a wave of negative emotions around the ancient founding team token sale, a claim of the company founder declined.
Price action was a strong contrast in the last year when projects like hype were raised to $ 6.00 and rose 400% in the next month.
Why do new tokens don’t admire?
There are many catalysts behind the abject performance of newly launched tokens; One of these is simply excessive hype pre-launch storage, it means that when a token eventually comes out, users are usually happy to return to their investment compared to doubling.
Another factor is the tokenomics, the condition of XPL is attributed to $ 813 million worth of “ecosystem and growth” Tokens that are said to be sold by market makers, which cause price pressure and beyond retail demand.
AIRDROP period is ruined to fail?
In the coming months Crypto users are due to receive airdrops from Metamask, Openea and Monad.
These projects are huge in their field; Metamask is the most commonly used crypto wallet used by millions, while opening transitioned from being the largest non-fungible token (NFT) exchange to becoming an onchain trading platform, and Monad is a hyped layer 1 blockchain that will Airdrop its token to the next week.
But if the new token performance of 2025 is to repeat itself, their Juggernauts can struggle to maintain a healthy level of demand more than thousands of dollars, especially in a project such as Openea where users who spend hundreds of thousands of dollars in the fees in 2021 are waiting for a slit back before the backs.
