Multiple projects launched through the Kaito community-driven launchpad have experienced severe valuation collapses immediately following their Token Generation Events (TGEs). Data from market participants and CoinGecko reveals a consistent pattern of steep declines, reigniting scrutiny over early-stage valuations and the sustainability of "alpha" on social-driven platforms.
Specific projects have seen catastrophic drops in their Fully Diluted Valuation (FDV). Play AI (PLAI) plummeted from a $50 million launch valuation to approximately $2.1 million. Hana Network (HANA) fell from $40 million to about $10.5 million. Novastro crashed from $50 million to just over $1 million, and Bitdealer dropped from $35 million to around $2.8 million.
The weakness extends beyond recent launches to earlier campaigns. Tokens like Boundless' ZKC are down nearly 90% since its September launch. Limitless' LMTS has fallen over 46% since October, Everlyn's LYN is down more than 71%, and Block's BLOCK token has lost close to 70%. The combined market cap of tokens under the Kaito Capital Launchpad umbrella is about $77.1 million, down nearly 15% in 24 hours.
Analysts point to several structural issues driving the sell-offs. A primary factor is the practice of projects unlocking 100% of their token supply at TGE, flooding the market and creating immediate selling pressure. Additionally, critics argue that pre-launch valuations set during private rounds are often inflated, leaving little room for public market upside.
The fallout has created friction within the Kaito ecosystem. Community members report that dozens of projects altered reward terms or delayed distributions after campaigns concluded. These disputes have strained relations between creators and project teams that relied on Kaito's platform for visibility.
The negative sentiment has also impacted Kaito's native token, KAITO, which is trading near $0.50, down more than 56% over the past three months and roughly 83% below its all-time high. Associated NFTs, like Yapybaras, have also declined in value.
In response, Kaito has outlined platform updates aimed at increasing transparency and reducing manipulation. These include stricter on-chain identity checks, higher reputation thresholds for participation, and new verification methods designed to curb bot-driven engagement.
