DeFiLlama Founder Reveals: Token Projects Have 50% Higher Failure Rate

Token Launch Trend Sparks Debate

In the current crypto market, many projects focus on token launches to attract capital, but whether this truly benefits long-term growth remains questionable. Data shows that among projects reaching significant scale (e.g., TVL over $10M or monthly fees over $1M), token-based projects face a 50% higher failure rate than non-tokenized ones.

Tokens Add Complexity

Critics argue that token mechanisms often complicate product design, shifting developer focus from core functionality. Many teams prioritize market sentiment and token narratives over solving real-world problems, potentially undermining long-term sustainability.

Infrastructure Holds Long-Term Value

While market trends favor asset issuance, scalable protocol infrastructure and core technology products remain the most promising for long-term success. Early popular projects might have achieved stronger growth if they had prioritized technical missions over token speculation.