Crypto Market Shifts Towards Utility-First Projects
The crypto market is shifting towards projects that build utility first and launch tokens last. This change is driven by the fact that only 32% of new tokens trade higher in their first month, with this figure dropping to 25% after 30-59 days.
In the past, many projects launched tokens before products, raised money before proving demand, and built communities around roadmaps, whitepapers, and promises. However, this model is wearing thin as investors become more selective and focus on later-stage companies.
Capital investment in crypto fell by roughly 50% quarter-over-quarter in Q1 of this year, with most funding going to later-stage companies. This shift has led to a change in the token launch model, with projects increasingly entering the market with higher initial floats and lower fully diluted valuations.
Ault Blockchain is one example of a project that's flipping the script by building its network first and launching tokens last. Its native $AULT token enters circulation through Licensed Mining Nodes that provide verifiable random function services, generating cryptographically verifiable randomness for the network.