Several recent token launches have seen dramatic drops, calling into question the Token Generation Event (TGE) meta ahead of a number of high-profile airdrops.
CAMP, the native token of an AI-driven layer 1 blockchain, is now down 88% since its introduction last month, while DoubleZero’s 2Z has lost 60% of its value in just eight days.
There were also notable losses for Anoma’s XAN, down 60% in a week. XPL, arguably one of the most high-profile projects of the year, fell below its TGE price on Friday amid a wave of negative sentiment around the founding team’s alleged token sale, a claim the company’s founder has refuted.
The price action stands in stark contrast to last year, when projects like HYPE debuted at $6.00 and rose 400% the following month.
Why do new tokens fail to impress?
There are several catalysts behind the abject performance of the newly launched tokens; one is simply overexploiting pre-launch hype, meaning that when a token eventually comes out, users are usually happy to get a return on their investment instead of doubling down.
Another reason is tokenomics, the fate of XPL has been attributed to $813 million worth of “ecosystem and growth” tokens that were allegedly sold through market makers, causing price pressure and exceeding demand from retail investors.
Is the airdrop season doomed?
Over the next few months, crypto users are expected to receive airdrops from MetaMask, OpenSea, and Monad.
These projects are massive in their respective fields; MetaMask is the most commonly used crypto wallet by millions, while OpenSea has evolved from the largest non-fungible token (NFT) exchange to an on-chain trading platform, and Monad is a trending layer 1 blockchain that will airdrop its token next week.
But if the new 2025 token performance is to be repeated, these respective heavyweights may struggle to maintain a healthy level of demand that outstrips supply, especially in the case of a project like OpenSea where users who spent hundreds of thousands of dollars in fees in 2021 are waiting for a rollback before presumably cashing out.
