By Gadi Glikberg, CEO & Co-Founder of CodeStream
The crypto market has evolved. Investors, developers, and communities have become more sophisticated, and the days of blindly chasing every new token launch are long gone. Yet, despite this progress, we continue to see a recurring problem: high cap, low float launches that dump tokens on the community, enrich a select few, and leave long-term believers holding the bag.
It’s time for this to stop.
The Problem with High Cap, Low Float Token Launches
Too many projects launch with sky-high valuations, only to release a minuscule percentage of their total supply into circulation. This artificially constrains supply, creating an illusion of scarcity and driving initial prices up. Meanwhile, early insiders, venture capitalists, and team members hold the vast majority of tokens, waiting for the right moment to cash out at the expense of retail investors.
What happens next is predictable. Vesting schedules unlock and supply increases, prices drop significantly, and the community—those who actually believed in the project’s long-term potential—is left holding an empty bag. We’ve seen it happen time and time again, and everyone is getting fed up.
Why This Model is Unsustainable
The crypto community has more experience than it did during the ICO boom or DeFi summer. Investors have learned to ask the right questions:
- What percentage of tokens are actually circulating?
- What happens when insiders’ tokens are unlocked?
- Who benefits the most from this token structure?
- What is the real utility of the token beyond speculation?
- How does the project plan to build a sustainable ecosystem?
Projects that fail to address these concerns are finding it increasingly difficult to maintain credibility. Tokenomics that prioritize early insiders over the community are a red flag, and the market is responding accordingly. We’re seeing a shift toward fairer launches, transparent token distribution models, and real utility-driven adoption.
The Path Forward: Transparency and Community-First Models
If Web3 is truly about decentralization, ownership, and community empowerment, then token launches need to reflect those values. Here’s what needs to change:
- Lower Initial Valuations – Projects should be priced based on actual traction and roadmap execution, not inflated speculation.
- Improved token emission plans – Artificially restricting supply to create hype does not build a strong foundation for long-term growth; nor do vesting schedules benefitting insiders.
- Community-Focused Distribution – More tokens should go to builders, users, and contributors rather than VCs and insiders who will eventually dump them.
The Industry Must Hold Projects Accountable
Recent events have shown that many project tokens are created to extract value from communities without regard for the impact to a broader group. As investors and builders, we must demand better.
Codestream plans to lead by example by supporting projects that are transparent about their token distribution, avoid manipulative launch tactics, and are truly committed to building for the long run.
Crypto has the potential to reshape industries, create new economies, and empower individuals. But if we allow greed-driven tokenomics to persist, we will continue to alienate the very people who believe in this technology the most.
The market is tired of the old games. It’s time to build something better, to be the change we want to see.
The Industry is Built to Extract—That Must Change
Let’s be clear: the current model isn’t failing by accident—it’s designed to extract value, not build it. Insiders profit while communities get left behind, and tokenomics prioritize short-term hype over long-term sustainability.
This cycle is killing trust in crypto. If Web3 is about decentralization and ownership, why do the same gatekeepers keep winning? Why are we still rewarding speculation over real innovation?
The industry needs a reset. We need tokenomics that incentivize contribution, not extraction. Codestream is taking a stand—we won’t support extractive models, and we challenge every builder, investor, and project to do the same. The market is tired, and the time for change is now.
