tl;dr
Tokens launched through exchange-run launchpads in 2023 achieved strong double-digit returns, with MEXC leading in deal count and Bybit posting the highest single return. However, structural issues such as inflated valuations, limited circulating supply, and insider-favoring access mechanisms led to...
Tokens launched through exchange-run launchpads delivered impressive double-digit returns in 2023, according to a July 15 report by MEXC Research. The analysis covered numerous offerings across centralized exchange (CEX) and decentralized exchange (DEX) platforms. Notably, MEXC recorded five listings in the first half of the year, achieving an average peak return of 10.83 times the sale price, leading in deal count. Bybit posted the highest single return with the token Xterio, which reached 14.71 times the initial investment, though it required users to lock platform tokens in a tiered system. Meanwhile, Gate.io lowered participation costs to 1 USDT but still allocated most tokens to stakers meeting snapshot rules. DEX platforms like Pump.fun sometimes matched CEX returns and provided unrestricted access, yet participants faced volatile price swings and increased risk of rug pulls due to a lack of thorough due diligence.
The report highlighted structural issues that hinder post-sale token performance. Many launchpads set tokens at inflated fully diluted valuations while releasing only a small circulating supply, prompting early holders and platforms to sell during the early secondary-market demand phase. This trend leads to immediate price drops, eroding investor confidence and leaving retail buyers with declining assets despite initial return-on-investment figures. Access mechanisms often favor insiders; CEX programs benefit large balance holders through VIP tiers or staking requirements, and DEX bonding curves can be exploited by bots, undermining the ideal of democratic token sales that set them apart from traditional venture financing.
Emerging models aim to correct these problems by introducing fair launch frameworks with dynamic pricing to prevent overvaluation and broaden token distribution. Contribution-based allocation methods, such as those used by Virtuals Genesis, reward users who support network development or hold ecosystem NFTs rather than those staking capital. Full-cycle incubation programs offer liquidity, marketing support, and post-listing oversight to better align project goals with investor interests. The report recommends imposing hard caps on fully diluted valuations, increasing the ratio of tokens available to the public, and adopting flexible qualification criteria that evolve with the maturity of projects. It also emphasizes the need for post-launch accountability metrics to monitor whether projects meet development milestones after the initial sale.
In conclusion, the study forecasts that launchpads will continue to play a dominant role in early-stage token distribution during the next market upswing. However, only approaches that balance potential returns with transparent allocation processes and realistic pricing structures are likely to maintain user trust and sustain long-term engagement in the crypto investment community.