Lack of Financial Planning in Crypto Token Launches Spurs Market Distrust and Volatility
Recent sharp declines in tokens like MOVE (Movement Foundation) and OM (Mantra) have highlighted serious issues in crypto token launches. Both articles detail how many web3 projects, led by technical teams without financial expertise, neglect essential financial planning, tokenomics, liquidity arrangement, and investor relations. This disorder has resulted in sudden price crashes, high volatility, and a loss of investor trust. The absence of industry standards—such as transparent token unlocks, disclosure of presale deals, and established professional practices—has enabled non-transparent arrangements and allowed weaker projects to outperform fundamentally strong ones. Secondary OTC markets exacerbate the issue by masking true token supply. Recent allegations of coordinated large token releases with market makers have further eroded trust. In response, some firms are moving toward greater transparency and longer-term alignment with investors. Both summaries warn that unless the crypto industry adopts traditional financial rigor, clear communication, and proper market controls, it risks further credibility damage and slow institutional adoption.
Bearish
This news highlights major operational and transparency failures in the crypto token launch process, resulting in sharp crashes in tokens like MOVE and OM. The lack of financial planning, clear communication, and transparent supply information has triggered sudden sell-offs and exacerbated volatility, directly undermining investor confidence. In the short term, such revelations are likely to have a bearish effect on the mentioned tokens and potentially the wider market, as traders grow wary of opaque tokenomics and insufficient oversight. In the longer term, without the adoption of rigorous standards and market controls, the industry’s credibility and ability to attract institutional capital may be significantly weakened, further depressing prices and hampering recovery.