Member-only story
We’ve seen thousands of tokens launched in the past years. Yet, over 90% of them fail—crashing to near zero within months or years.
Why does this happen? And more importantly—how can we build sustainable tokens that last?
After analyzing failed and successful Web3 projects, here’s what I found.
1. Ponzi-Like Tokenomics
Many tokens reward early buyers at the expense of newcomers, creating unsustainable price bubbles.
How These Models Work:
- Unsustainable High Yields → Some projects promise crazy APYs (e.g., 1000%+ staking rewards) that collapse when new buyers stop coming.
- Artificial Demand → Projects force users to buy & hold tokens to access services but don’t create real demand.
- Pyramid-Like Structures → Early investors dump on later entrants, causing price crashes.
Example: Luna/UST collapse—when trust breaks, everything crashes.
2. No Product-Market Fit
A token is not a business. Many projects launch a token before proving their product works. That’s like issuing stock in a startup without a product.
