From Hype to Reality
Building blockchain projects that last beyond the bull market
Published on Nov 25, 2024
The allure of the bull market can be intoxicating for founders. Prices soar, interest peaks, and communities grow at breakneck speed. But when the inevitable bear market hits, projects often find themselves ill-prepared, with their tokens plummeting in value and communities dissipating.
The harsh truth is that many blockchain projects are designed for the short term. They lean heavily on hype and speculation while neglecting the core fundamentals that drive long-term success. At Tokenise, we’ve seen this pattern play out repeatedly, and we’re here to help founders break the cycle.
The Ignorance Tax: Why Founders Struggle Beyond the Bull Market
The mistakes founders make often stem from what Alex Hormozi calls the “ignorance tax”—the cost of not knowing what they don’t know. Instead of investing in experts or robust tooling, many founders wing it, relying on shallow tokenomics and surface-level community narratives. This ignorance tax can be damaging at best and catastrophic at worst.
The result? Projects that lack proper business fundamentals, over-rely on speculation, and never iterate beyond simplistic rewards programmes or vague “community-first” messaging. It’s this lack of depth and intentionality that ultimately leads to their downfall.
Lessons from the Past: Axie Infinity and Illuvium
History offers no shortage of cautionary tales. Axie Infinity, once the darling of the blockchain gaming world, saw its ecosystem skyrocket on the back of massive rewards and lucrative staking programs. At its peak, Axie’s AXS token hit $150, while SLP reached $0.30. Today, those tokens are worth $8 and $0.003, respectively.
What went wrong? Simply put, the hype died. Axie’s gameplay wasn’t compelling enough to sustain interest, and its tokenomics were overly dependent on rewards programs. When staking vaults unlocked and tokens flooded the market, the ecosystem couldn’t maintain its value. Without strong fundamentals to fall back on, Axie’s price tanked—and it has yet to recover.
The Foundation for Longevity: Ecosystem First, Token Second
Founders must shift their mindset. The most successful projects prioritise building great ecosystems and underpin them with thoughtful tokenomic - not the other way around. Imagine if traditional currencies like the USD had no commerce backing them - what use would they have? This is the mistake most blockchain projects make: creating currencies without a purpose and hoping for the best.
The projects that endure are those with sound fundamentals:
- BNB and Solana (SOL) have cultivated their ecosystems with purpose, creating vibrant, active communities and robust economies.
- Ethereum (ETH), while down from its all-time highs, remains the backbone of the blockchain space, with a significant portion of all crypto Total Value Locked (TVL) on Ethereum or EVM-compatible chains. These projects succeed because their ecosystems are designed to thrive regardless of market conditions, with tokenomics that reinforce their value rather than relying on fleeting hype.
Community: The Heartbeat of Enduring Projects
A loyal and engaged community is the cornerstone of any successful blockchain project. Whether through monetisation, exposure, governance, or culture, communities add tangible and intangible value to projects.
Take Dogecoin (DOGE), for example. What started as a joke has become one of the most recognised cryptocurrencies, thanks to its grassroots community-building efforts. Memecoins often exemplify this: their communities are culture-driven, fostering loyalty and enthusiasm that outlast market cycles.
Projects that want to endure must emulate this cultural resonance while tying it to practical value within their ecosystems.
How Tokenise Bridges the Gap
At Tokenise, we offer founders the tools and expertise to build projects that thrive across market cycles. Our enterprise-grade software empowers founders to create sustainable, long-term models. By integrating features like price forecasting, emission schedules, and liquidity simulations, we help projects design tokens that can weather the highs and lows of the market.
Through our Enterprise Services, we take clients to market, owning the execution of their token launches and ensuring robustness and longevity. With the right tooling and support, founders can confidently build projects that stand the test of time.
Planning for the Long Game: A Blueprint for Success
Building a project without proper planning is like constructing a house without blueprints—it may stand for a while, but the first storm will bring it down. Contrast this with a house built using blueprints designed for resilience and longevity. It costs more upfront, but the end result is a structure that can weather hurricanes.
Founders must plan for multiple scenarios, forecasting potential futures and designing ecosystems that can adapt. Tokenise equips founders with the tools to simulate long-term outcomes, helping them build projects that remain sound even as market conditions shift.
The Next Generation of Blockchain Projects
The projects that define the next era of blockchain will be those that prioritise fundamentals.
These projects will:
- Build robust ecosystems with real value engines.
- Generate meaningful revenue through innovative business models.
- Back their ecosystems with useful digital assets and purposeful tokenomics.
- The era of speculation-driven projects is ending. The future belongs to founders who combine sound business practices with the transformative power of blockchain.
Conclusion: From Hype to Reality
Blockchain projects that thrive beyond the bull market are those built with intention, expertise, and resilience. At Tokenise, we help founders move past the hype and focus on what truly matters: creating ecosystems and tokenomics that stand the test of time.
If you’re ready to build a project that lasts, build confidently. Build with Tokenise.
Daniel Tauhore
Founder of Tokenise.