The crypto community is raising concerns as multiple projects launched through Kaito’s platform see dramatic valuation drops following their Token Generation Events (TGE). This trend has ignited discussions about the sustainability of crypto crowdfunding and whether Kaito’s early momentum is fading.
Dramatic Valuation Drops
Several projects that raised capital through Kaito’s community‑driven launchpad have faced steep losses post‑TGE. For instance, Play AI, which debuted with a fully diluted valuation of approximately $50 million, is now valued near $2.1 million. Similarly, Hana Network’s valuation dropped from $40 million to around $10.5 million, while Novastro fell from $50 million to just over $1 million. Bitdealer, another project, saw its valuation decline from $35 million to approximately $2.8 million.
These significant drops have reinforced concerns about how early‑stage valuations on social‑driven launchpads translate once tokens begin trading openly.
How Kaito’s Launchpad Works
Kaito operates an AI‑powered information platform focused on “InfoFi,” where user‑generated content, engagement, and on‑chain activity are transformed into structured data. Its launchpad, sometimes referred to as the Yapper or Capital Launchpad, allows Web3 projects to raise funds and gain attention before and after their TGEs.
Projects set their own terms, including valuations and vesting schedules, while the community helps surface campaigns through staking, voting, and accumulated reputation points earned by creating content. Allocations are typically assigned during a preferred phase before opening remaining slots on a first‑come basis.
Criticism and Challenges
Criticism has grown around how some of these campaigns have been managed. Analysts have pointed to full token unlocks at TGE as a key factor contributing to sharp sell‑offs. When projects release 100 % of their token supply at launch, all issuance enters circulation at once, leaving little buffer against immediate selling pressure.
Additionally, public sale valuations often leave little upside once tokens begin trading. Creator relations have also become a contentious issue. Community members tracking campaign outcomes have reported that dozens of projects either altered reward terms or delayed distributions after campaigns concluded. Others launched without clear timelines or structures, leading to disputes between creators and project teams.
Impact on Kaito’s Token
The broader sentiment shift has also affected Kaito’s own token. KAITO is currently trading near $0.50, down more than 56 % over the past three months and roughly 83 % below its all‑time high of $2.88. The downturn has been accompanied by visible strain within the ecosystem, with Yapybaras NFTs tied to the platform falling to around 0.38 ETH.
Platform Updates and Future Outlook
In response to these challenges, Kaito has introduced recent platform updates aimed at tightening verification, reducing low‑quality content, and increasing transparency around participation rules. The company has outlined changes focused on on‑chain identity checks, stricter reputation thresholds, and new verification methods designed to reduce manipulation and bot‑driven engagement.
As Kaito faces mounting pressure, the future of its launchpad and the projects it supports hangs in the balance. The crypto community is watching closely to see if the platform can regain trust and stability.
