Multiple recent cryptocurrency token launches have experienced severe price collapses, raising serious questions about the token generation event (TGE) model just as major airdrop season approaches.
CAMP token, the native cryptocurrency of an AI-focused layer-1 blockchain, has plummeted 88% since its launch last month, while DoubleZero's 2Z token has lost 60% of its value in just eight trading days.
Anoma's XAN token also recorded significant losses, dropping 60% within one week. XPL token, considered one of the most anticipated projects this year, fell below its TGE price amid negative sentiment surrounding alleged team token sales - claims the project founder strongly denied.
This poor performance starkly contrasts with last year's successful launches where projects like HYPE token debuted at $6.00 and surged 400% within the following month.
What's Causing New Token Launch Failures?
Several factors contribute to the disappointing performance of newly launched tokens. Primary reasons include excessive pre-launch farming that creates sell pressure at launch, plus problematic tokenomics where large token allocations to ecosystem funds create overwhelming selling pressure that dwarfs retail investor demand.
Will Airdrop Season Face Similar Challenges?
The upcoming months feature highly anticipated airdrops from major projects including MetaMask, OpenSea, and Monad. These industry giants dominate their respective sectors - MetaMask serves millions as the most popular crypto wallet, OpenSea evolved from leading NFT marketplace to comprehensive onchain platform, while Monad represents a much-anticipated layer-1 blockchain launching its token next week.
However, if 2025's token performance patterns continue, these major projects might struggle to maintain sufficient demand to counter selling pressure, particularly for platforms like OpenSea where early users who paid substantial fees in 2021 may seek immediate profit-taking.