From NFTs to the privacy sector, can old projects revive themselves by launching tokens en masse?
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From NFTs to the privacy sector, can old projects revive themselves by launching tokens en masse?
Compared to reinventing narratives, "launching a token" may become a lifeline for established projects.
Navigating Web3 tides with focused insightsAuthor: flowie, ChainCatcher
While the crypto community is filled with complaints, numerous projects born in the previous two cycles—the so-called "Qing dynasty leftovers"—are now successively announcing token launches.
Last night, OpenSea first announced the launch of its $SEA token, followed by Doodles officially revealing its $DOOD token on Solana. These mark two more major NFT leaders joining the ongoing token issuance trend after Pudgy Penguins and Azuki.
It's not just the NFT sector—privacy projects that were once popular in the last cycle but nearly vanished in 2024 also appear to be seeking survival through token launches. Last night, Aztec Network, the Ethereum privacy layer backed collectively by top-tier investors including a16z and Paradigm, established a foundation, potentially preparing for an upcoming TGE.
Will the community pay for these "late" token launches?
Pudgy Penguins launched its token during a time when few paid attention. Thanks to extremely high yield expectations from the community, its NFT floor price surged from 11 ETH to 35 ETH, while its PENGU token reached a peak FDV of over $6 billion at launch.
Following Pudgy Penguins' demonstration effect, many blue-chip NFTs have collectively announced token launches. However, compared to Pudgy Penguins, other imitating NFT projects haven't received similar levels of attention, with both their NFTs and tokens generating significantly less buzz.
In mid-January, after another blue-chip NFT, Azuki, announced its ANIME token, NFTs within the Azuki ecosystem saw slight recovery but only modest gains—far below those of Pudgy Penguins. The Azuki series NFT rose by 17.42% intraday, while its affiliated series showed no significant increases.
Last December, after Doodles NFT founder Burnt Toast posted a tweet hinting at a token launch, Doodles' floor price spiked briefly, peaking above 8 ETH before falling back to 6.7 ETH, registering a near 60% gain in 24 hours. After the official announcement this morning, at the time of writing, the Doodles NFT floor price remained at 4.449 ETH.
Following news of OpenSea’s potential token launch, reactions in the community were mixed.
At the height of the 2021 NFT boom, OpenSea raised aggressively, reaching a valuation of $13 billion. While the community actively traded in anticipation of an airdrop, OpenSea insisted on pursuing an IPO path, drawing criticism. Now, with the NFT market long cooled and no IPO realized, OpenSea is instead following Pudgy Penguins’ footsteps by launching a token.
In response, crypto KOL @BroLenoAus criticized: "This is OpenSea’s final harvest before turning into a zombie—essentially a last desperate struggle." He stated he would short OpenSea decisively upon receiving any airdrop.
Moreover, OpenSea’s new platform OpenSea 2.0 (OS2), built in preparation for TGE, sparked backlash during its private test phase due to offering free access only to Gemesis NFT holders, while others had to join a waitlist—seen as favoring early adopters and neglecting existing users.
However, @ElvisPoldark believes there are upsides: the new features of OpenSea 2.0, driven by the token launch, might offer improved user experience and better competition against rivals like Blur. For example, OpenSea 2.0 provides one-stop service for NFTs and tokens, allowing users to purchase assets across multiple blockchains without manual bridging.
Currently, further details on Doodles’ and OpenSea’s airdrops and TGEs remain unconfirmed, leaving it uncertain whether users will ultimately embrace them.
From NFTs to privacy projects, “token launches” have become the lifeline for aging projects
Given precedents like Pudgy Penguins and even Trump launching tokens, rather than crafting new narratives, "launching tokens" may now be the go-to survival strategy for legacy projects.
Yet these former leaders backed by elite VC firms are already facing severe operational bottlenecks and trust crises.
OpenSea, once the largest NFT marketplace, peaked at $5 billion in monthly trading volume in early 2021. But according to Dune Analytics, last month’s NFT trading volume was around $190 million—less than 4% of its peak.
Facing competition from Blur and Magic Eden, OpenSea’s market share has dropped from 90% in 2022 to around 30%. It also faces regulatory compliance challenges.
Doodles’ floor price has plummeted from a high of 25 ETH down to 4.449 ETH. During previous bear markets, Doodles attempted self-rescue through IP licensing and merchandise sales, but results have been minimal.
Aztec Network, a flagship Ethereum privacy project, raised over $100 million across four funding rounds, attracting top investors such as a16z, Paradigm, Coinbase Ventures, and HashKey Capital.
However, after raising $100 million, Aztec Network abruptly announced a business pivot in March 2023, shutting down its DeFi privacy bridge Aztec Connect and shifting focus to two new core products: Noir, a zero-knowledge proof-compatible general-purpose programming language, and a new privacy-focused blockchain.
This pivot, along with the long-delayed airdrop, led to community disappointment. Since then, the project has seen little progress or visibility.
Overall, in a market lacking liquidity and innovation, where attention is no longer easily captured by old narratives or VC-backed tokens, legacy projects that have already lost trust face enormous challenges in attempting to turn things around through token launches.
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