Kaito-Backed Projects Experience Significant Post-TGE Value Declines Amid Market Concerns
Several projects launched via the Kaito Capital Launchpad have seen heavy drawdowns following their Token Generation Events (TGE). Market valuations for notable projects have plunged drastically: Play AI's fully diluted valuation (FDV) dropped from approximately $50 million to about $2.1 million; Hana Network declined from roughly $40 million to $10.5 million; Novastro fell from around $50 million to $1.05 million; and Bitdealer decreased from about $35 million to $2.8 million.
The Kaito ecosystem's other campaigns have similarly suffered from steep losses. Boundless ZKC is down by nearly 90% since September, currently trading near $0.0995, LMTS has fallen over 46% since October, LYN has dropped more than 71%, and BLOCK is down about 70%. Collectively, tokens launched through the Kaito Capital Launchpad carry a combined market capitalization of approximately $77.1 million, which represents a decline of roughly 15% in the past 24 hours, alongside a daily trading volume of around $38.3 million.
The native KAITO token itself trades close to $0.50, marking a decrease of more than 56% over the past three months and standing approximately 83% below its all-time high of $2.88. Additionally, Yapybaras NFTs on the platform have fallen to roughly 0.38 ETH. With upcoming token unlocks scheduled for December 20, near-term caution is advised by market participants.
Analysts and participants have questioned the sustainability of launchpad valuations that are primarily driven by social engagement as tokens begin trading on the market. In response, Kaito has implemented updates to strengthen the platform's integrity, including on-chain identity verification, stricter reputation thresholds, and new verification methods aimed at curbing manipulation and reducing bot-driven engagement. More changes are expected to be introduced.
The Kaito launchpad operates with Yapper/Capital Launchpad supporting campaigns where project teams set terms. The platform offers allocations in a preferred phase prior to remaining slots, and community involvement occurs through staking, voting, and reputation mechanisms.
