TL;DR
- Several projects launched through Kaito’s launchpad collapsed after their TGEs: Play AI fell from $50M to $2.1M, Hana dropped from $40M to $10.5M, and Novastro declined from $50M to just over $1M.
- The deterioration extended to tokens that had already launched: ZKC lost nearly 90%, LMTS more than 46%, LYN over 71%, and BLOCK close to 70%.
- Releasing 100% of supply at TGE and aggressive valuations left tokens exposed to rapid selling, with little room to sustain prices.
Several projects that raised capital through Kaito’s community launchpad posted severe losses after their TGEs, and the numbers leave little room for interpretation.
Play AI moved from a fully diluted valuation near $50 million to just over $2.1 million. Hana Network fell from $40 million to $10.5 million. Novastro dropped from $50 million to barely more than $1 million. Bitdealer followed the same path, sliding from $35 million to around $2.8 million. The pattern is clear and repeats itself.
This issue is not limited to recent launches. Other tokens that had already passed through the Kaito ecosystem show prolonged erosion. Boundless’ ZKC trades around $0.0995, down nearly 90% since September. Limitless’ LMTS has lost more than 46% of its value since October. Everlyn’s LYN is down over 71%. BLOCK has fallen close to 70% since its debut. Taken together, tokens from the Kaito Capital Launchpad account for a combined market capitalization of roughly $77.1 million, after dropping about 15% in 24 hours, with $38.3 million in daily volume.
The discussion is no longer about market timing, but about launch design. Many projects released 100% of their supply at TGE. That structure places the entire issuance into circulation immediately and leaves prices exposed to fast selling, with no buffers. Another critical factor compounds the issue: public valuations. In several cases, the implied launch price left little margin for the market to absorb the token without correcting.
Kaito Announced Changes to Its Launchpad
Token underperformance has also strained the relationship between projects and creators. Complaints multiplied around changes to rewards, delayed distributions, and campaigns that closed without clear rules. Only a minority delivered on the terms communicated at the outset. This dynamic helped erode trust in the visibility and engagement model that underpins Kaito.
The impact extended to the native token as well. KAITO trades near $0.50, down more than 56% over three months and roughly 83% below its all-time high of $2.88.
Kaito announced adjustments to verification, reputation systems, and quality control. The market, however, has already delivered a preliminary verdict. The alpha has not disappeared entirely, but it now demands valuation discipline, more carefully designed issuance structures, and rules that do not get rewritten after the TGE
