Kaito Kickstarter Projects Experience Significant Post-TGE Declines

Kaito Kickstarter Projects Experience Significant Post-TGE Declines — Is the Alpha Lost?

Several projects that secured funding through Kaito's community-focused launchpad are now facing substantial losses after their token generation events (TGEs). This situation has sparked renewed discussions about the performance and valuation of these projects post-TGE, raising concerns about whether the early potential, or “alpha,” of this platform has diminished.

Key Takeaways

Kaito-supported projects face significant declines post-TGE, raising concerns about valuation and market stability.
Numerous tokens that participated in the Kaito ecosystem have seen considerable drops in value.
There is criticism regarding how campaign allocations have been handled and the overall transparency of project timelines and rewards.
Kaito’s own token has experienced a major dip, reflecting broader challenges within the ecosystem.
The platform is implementing changes to improve verification, reduce low-quality engagement, and increase transparency moving forward.

According to insights from market analysts, numerous Kaito-supported projects have experienced severe declines since their launches.

Play AI launched with a fully diluted valuation of around $50 million, but its current worth is approximately $2.1 million. Hana Network decreased from a valuation of $40 million to about $10.5 million, while Novastro fell from $50 million to just above $1 million. Meanwhile, Bitdealer dropped from $35 million to roughly $2.8 million.

This trend intensifies concerns regarding how initial valuations on socially-driven launchpads hold up once tokens begin trading in the open market.

Kaito Launchpad Under Scrutiny as Tokens Plummet After TGE

The struggles haven't just affected newly launched projects; numerous tokens that previously participated in Kaito's ecosystem have also seen extended declines.

The ZKC token from Boundless is currently trading at about $0.0995, reflecting a nearly 90% drop since its debut in September.

ZKC token performance

Other tokens like Limitless' LMTS and Everlyn's LYN have witnessed declines of over 46% and 71%, respectively, while Block's BLOCK has lost nearly 70% of its launch value as well.

Kaito Capital Launchpad, which combines these offerings, now has a total market capitalization of roughly $77.1 million, witnessing a nearly 15% decrease in just the past 24 hours, with around $38.3 million traded daily.

Kaito market performance

Kaito runs an AI-based information platform centered on "InfoFi," which transforms user-generated content, engagement, and on-chain activities into structured data.

The launchpad, also known as the Yapper or Capital Launchpad, enables Web3 projects to gather funding and visibility before and after TGEs. Projects have the flexibility to set their own terms, including valuations and vesting schedules, while the community aids in promoting campaigns via staking, voting, and accumulation of reputation points earned by content creation.

Pressure Mounts in the Kaito Ecosystem as Campaign Performance Falters

Allocations are generally assigned during a preferred phase before opening up remaining slots on a first-come, first-served basis.

Criticism has intensified around how some of these campaigns have unfolded. Analysts have identified full token unlocks at TGE as a significant factor contributing to rapid sell-offs.

Token supply concerns

One crypto analyst remarked that projects releasing 100% of their supply at launch have effectively flooded the market, providing little room to buffer against immediate selling pressure.

Additionally, it has been noted that public sale valuations frequently offer limited potential for gains once trading begins.

Creator relations have grown increasingly contentious, with community members monitoring campaign results noting that numerous projects modified reward terms or postponed distributions afterward. Some projects even launched without clear timelines or structures, while only a few fulfilled their promised rewards.

These disagreements have created tension between creators and project teams who depended on Kaito’s engagement engine for visibility.

This negative sentiment has negatively impacted Kaito’s own token, which is currently trading around $0.50—a decline of over 56% in the last three months.

KAITO token performance

The token now sits approximately 83% below its all-time high of $2.88, although it is slightly above its historical low.

This downturn has been accompanied by visible stress within the ecosystem. The Yapybaras NFTs linked to the platform have decreased to around 0.38 ETH, and upcoming token unlocks slated for December 20 have provoked immediate caution among holders.

Yapybaras NFTs

In response, some token holders have highlighted recent updates from the platform aimed at strengthening verification processes, minimizing low-quality content, and enhancing transparency regarding participation rules.

Kaito has recently announced a set of changes emphasizing on-chain identity verifications, stricter reputation criteria, and new methods of verification designed to mitigate manipulation and bot-driven activities.

The company stated that its system is evolving based on community feedback, with further modifications anticipated in the future.