This article aims to explain some of the common reasons why most cryptocurrencies experience an ever declining price action.

If you’ve ever lost money holding a coin, this is for you. And if you’re wondering whether your token is worth holding, this is for you as well. Enjoy and have fun.

THEY DO NOT MEET THE STANDARD OF BITCOIN:

When Satoshi deployed Bitcoin, he set the standard for how a proper token should be structured, one built around a real use case that creates organic demand.

$BTC ‌ is simply money, and it embodies the three core functions of money:

→ Medium of exchange

→ Unit of account

→ Store of value

This alone, aside from its other emerging use cases and the underlying blockchain technology, is why Bitcoin is demanded by individuals, corporations, and even governments.

The problem with most new launches is that they don’t have any meaningful use case beyond governance. And in reality, governance is easily gameable by whales and does nothing to drive actual demand for the token.

Governance, to me, is just an excuse for protocols to issue a token. Governance can always be conducted without minting a new asset.

If we want a real shift in demand for new launches, teams need to mirror Bitcoin’s principle: launch tokens that serve a real, undeniable purpose.

A proper use case that not only drives positive impact within the protocol’s ecosystem, but also represents something of real value for the public to confidently hold as an asset.

PREDATORY TOKEN DESIGN:

The low-float, high-FDV token design has proven to be a disastrous mechanism in recent times. It allows tokens to debut at valuations far above their true market value.

This happens because teams artificially withhold a large portion of the supply, releasing only a small percentage for trading at launch. By restricting circulating supply, they can force Token A to open at an inflated valuation. But this is nothing more than an illusion.

When those hoarded tokens eventually enter circulation, Token A will aggressively reprice to find its real market value, a process that is overwhelmingly negative for holders and long-term believers.

Weeks ago, I conducted research on most altcoins launched within a three-month window, and one common pattern stood out: their peak price occurred on the very day they launched. This is a terrible signal for the overall crypto industry.

Retail buyers who entered these tokens are now sitting on massive unrealized losses, and this has made people far more selective even skeptical about every new launch.

Beyond the flawed token structures, these tokens received virtually no real market demand. People simply avoided them because there was no clear upside and nothing that justified taking the risk.

The solution is simple: let every token discover its fair valuation early. Instead of artificially hoarding supply, allow the entire token allocation to be made available through an ICO. In this model, even the team and founders would need to market-buy their own allocations, ensuring true price discovery and genuine demand from day one.

almost followed this playbook, offering around 80% of its tokens to the public through a transparent ICO and allowing the market to set the initial valuation, while the remaining 20% was pre-allocated to the team and foundation rather than market-bought.

So if $ETH ‌ETH ever reached a particular FDV after launch, it was driven by genuine market demand, not by artificial scarcity or manipulation.

Recall:

$ETH ‌ is used as an example here because its 80% public float is much closer to a full, fair distribution than a token with only 10.8% circulating supply.

TOKENS ARE NOT TREATED AS EQUITY:

For a token to experience sustained upward price action, there must be real demand. And to generate that demand, the token needs to offer something of genuine value to the public.

If tokens are treated as equity, they don’t just generate demand, they become something of real, intrinsic value.

→ For the potential holder:

“I’m buying because I get to own a share of the protocol and can earn dividends at the end of each financial period.”

→ For the founder:

“Selling my token means giving up a portion of my ownership.”

Some people may disagree with this, but I believe it’s a feature the industry needs to integrate quickly. In a proper organizational setup, team salaries and operational expenses are paid from revenue. In crypto, that burden is often placed entirely on the token, which is fundamentally flawed.