Discovering a Successful DeFi Token in 2025: Insights from CoinTerminal's Maximiliano Stochyk

CoinTerminal executive Maximiliano Stochyk, who spoke about how to discover successful DeFi projects.

In this article, we explore the critical elements that indicate the potential success of a decentralized finance (DeFi) project, as shared by Maximiliano Stochyk, an executive at CoinTerminal.

Key Takeaways

Token launches are common, making it harder to identify quality projects.
Focus on transparency, robust tokenomics, and actual revenue generation is essential for success.
Backers, exchange listings, and community promotion are vital indicators of a project's credibility.
Established Web2 companies transitioning to Web3 have a significant advantage in launching tokens.
Transparency in operations and community communication is crucial for investor trust.
Investors should conduct thorough research, diversify investments, and be cautious about high yields in DeFi.

Understanding DeFi Project Success

Token launches have become easier in recent years, leading to an influx of projects and increasing difficulty in spotting genuine opportunities. As investors become more selective, fundamental elements such as transparency, strong tokenomics, and actual revenue generation become increasingly important.

To better understand what contributes to a successful DeFi project, we spoke with Maximiliano Stochyk from CoinTerminal, who has assisted crypto founders in raising over $25 million since 2014. He highlights key factors that signify a token's potential for success.

Evaluating Token Launch Factors

What are the main elements that inspire confidence in a project's potential for success?

Stochyk points out three critical factors, referred to as social proof indicators, that build trust with both retail investors and institutions:

Backers: The presence of reputable venture capitalists (VCs) or angel investors lends credibility to the project. If well-known names are involved, it garners attention.
Exchange Listings: Liquidity is essential. If a token is only available on low-volume decentralized exchanges (DEXs), attracting serious buyers becomes difficult, leading to potential volatility. Having at least one prominent centralized exchange (CEX) listing is preferable for exposure.
Community Distribution: Who is promoting the project? Stochyk advises leveraging key opinion leaders (KOLs) and influencers, noting that smaller influencers often have more engaged communities than larger ones, reflecting a more genuine interest.

Fundamentals of Strong Token Projects

Successful projects don’t solely depend on their tokens for survival. Stochyk emphasizes the importance of an existing revenue-generating business model, typically aligned with Web2 businesses, such as Software as a Service (SaaS). In such cases, the token is used for governance, growth, or incentivizing users rather than being a lifeline for the project's survival.

"Depending entirely on token sales for building a treasury creates long-term sell pressure," warns Stochyk, highlighting how this can lead to a collapse in token value.

During discussions with teams, Stochyk often asks about their revenue models. He notes that teams frequently focus on token price action and hype rather than sustainable business practices, which can be risky.

At CoinTerminal, there is a noticeable trend of Web2 companies seeking to enter Web3 with established metrics such as revenue, user base, and product-market fit, allowing for capital raising, user expansion, and experimentation with tokenomics — a much more stable foundation compared to projects relying heavily on their tokens.

Transparency also plays a vital role in token projects. Stochyk advocates for open communication regarding token supply, treasury funds, and asset management. Public treasury wallets and visible on-chain token movements can help ensure clarity. Moreover, consistent communication during changes or delays fosters investor trust.

Web2 Companies and Tokenization

Stochyk believes that the trend of Web2 companies launching tokens is gaining momentum. These companies, with established revenue streams and customer bases, can transition into Web3 without relying solely on token sales for financial stability.

When evaluating token usage, companies often incorporate the token for governance, revenue sharing, or user acquisition. However, the relevance of the utility must be genuine and not merely a guise for fundraising.

Marketing is considerably easier for profitable Web2 companies entering the crypto space than for crypto-native projects with no established base. Additionally, Web3 offers faster capital-raising opportunities through token launches compared to traditional investment rounds.

The Transparency Challenge in Crypto

Stochyk notes that the issue of transparency in the crypto space is multifaceted, encompassing both technical and human aspects. While some transparency can be achieved through dashboard tools and on-chain tracking, visibility diminishes once funds move to exchanges.

An essential part of transparency lies in teams being proactive about their operations. Stochyk stresses that silence often leads to fear and speculation, while open communication can alleviate concerns. He anticipates that regulatory authorities will necessitate transparency moving forward.

Market Trends and Innovations

When discussing current market narratives, Stochyk identifies Real World Assets (RWA) as a dominant trend, focusing on tokenization efforts bridging real-world values like stocks, real estate, and commodities with blockchain technology. The AI narrative is also still relevant, although some projects risk diluting their significance by attaching the term without meaningful use cases.

The GameFi industry, previously booming, is currently struggling to maintain traction after the play-to-earn model's downfall.

Another emerging area is quantum computing, with several new layer-1 projects dedicated to quantum processing and data computation, signaling a promising growth vertical.

Advice for New DeFi Investors

Stochyk offers several crucial tips for newcomers in the DeFi space:

Conduct Thorough Research: Verify token contracts, wallets, trading volume, and Total Value Locked (TVL) on-chain before investing.
Diversify Your Portfolio: Protect your investments by not over-concentrating in a single project. The crypto landscape is unpredictable, and diversifying can mitigate risks.
Be Cautious of High Yields: Approach offers of double-digit Annual Percentage Yields (APYs) skeptically, as they might indicate unsustainable practices.
Prioritize Security: Use DeFi platforms that simplify processes like wallet connections and transaction signing, as these measures reduce risks for users.

In summary, as the DeFi landscape evolves, recognizing the foundational elements of successful projects and maintaining a commitment to transparency, research, and security will be essential for both investors and developers alike.