Kaito Kickstarter Projects Suffer Massive Post-TGE Crash — Is the Alpha Gone?

Core Insights - Several projects utilizing Kaito's community-driven launchpad are experiencing significant losses post-token generation events (TGE), raising concerns about their performance and valuation discipline [1][2] - The decline in valuations of Kaito-backed projects has been notable, with Play AI dropping from a fully diluted valuation of approximately $50 million to around $2.1 million [1][2] - The overall market capitalization of tokens launched under Kaito Capital Launchpad is currently about $77.1 million, reflecting a nearly 15% decrease in the past 24 hours [4] Valuation Trends - Hana Network's valuation fell from $40 million to roughly $10.5 million, while Novastro decreased from $50 million to just over $1 million [2] - Bitdealer's valuation declined from $35 million to approximately $2.8 million, indicating a concerning trend in early-stage valuations on social-driven launchpads [2] Token Performance - Tokens previously launched within Kaito's ecosystem are also facing prolonged declines, with Boundless' ZKC token down nearly 90% since its September launch [3] - Limitless' LMTS has fallen more than 46% since October, Everlyn's LYN is down over 71%, and Block's BLOCK token has lost close to 70% from its launch levels [3] Launchpad Operations - Kaito's launchpad allows Web3 projects to raise funds and attention before and after their TGEs, with projects setting their own terms for valuations and vesting schedules [5] - Community involvement is facilitated through staking, voting, and reputation points earned by content creation, but criticism has emerged regarding the execution of some campaigns [6] Market Dynamics - Analysts have highlighted that full token unlocks at TGE contribute significantly to sharp sell-offs, as projects releasing 100% of supply at launch create immediate selling pressure [6]