Token launches for utility, Defi, and gaming tokens will likely start to evolve and upgrade. This is needed to draw back attention away from meme coins.
So far, if I have to be critical, the tokens have been launched with floats that are too low. 10-15% circulating at launch is too low. As a buyer, I would be tempted to wait until the inflation and emision rate of the token goes down before buying. A low float at launch either means you have a high inflation rate for awhile OR you have a large supply overhang that also causes uncertainty.
This is compounded for teams that have little traction or metrics to show to the market.
So practically, how will TGE strategies evolve?
• Float at launch will start to go up. 20-30% and eventually 40+% will become the norm.
• LARGER airdrops and P2A events to get float up at launch (this is good for community members, players, and web3 gaming adoption).
• Teams may go back to launching TGE on Dexes (like Memecoins) rather than listing on Tier 1/2 exchanges from day 1.
These changes will be forced upon teams by the market as retail can simply balk at these low float TGE's and continue to buy Memecoins that are fully circulated at launch.
THIS IS THE MISUNDERSTOOD ADVANTAGE that Memecoins have over utility tokens. They are fully diluted at launch and have a zero percent inflation rate.
Attached WIF for ref. Fully circulated.
Teams will need to be a bit more aggressive with getting tokens circulating at launch AND they will need to be justify token emissions with concrete traction and growth metrics.
Opensea is the first product that failed because it didn’t release a token.
It won’t be the last.
Eventually, many games will fail because they refuse to release a token.
I woke up to a nightmare...
Received a notification on my gmail, saying I sold 2 Axies. Excitedly opened it and was shocked at the price it sold for. 0.0015 WETH for a level 23 Axie!
At that point I knew this day is going to be extremely painful...