DefiLlama founder: Token projects that have reached a certain market value have about a 50% higher "probability of death" compared to projects that have not issued tokens.
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Jinse Finance reported that some voices in the crypto community believe the scalability of crypto products is limited, and token mechanisms often add complexity, causing developers to deviate from first principles in product design. Currently, more market resources are flowing into Launchpads and speculative assets, while investment in the development of truly mission-driven utility tokens and underlying protocols has significantly decreased. If early popular open-source projects focused on solving real needs rather than building narratives around token issuance and market sentiment, more sustainable growth might be achieved. In response, DefiLlama founder 0xngmi stated that this trend is supported by certain data. His research shows that among crypto projects that have achieved a certain market value (such as TVL exceeding $10 million or monthly fee income exceeding $1 million), projects that issue tokens have a "death probability" about 50% higher than those that do not issue tokens. However, some opinions also believe that although the current market narrative leans toward asset issuance, the true long-term value still lies in scalable protocol infrastructure and core technology products.
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