Kaito Kickstarter Projects Suffer Massive Post-TGE Crash — Is the Alpha Gone?

Several projects that raised capital through Kaito’s community-driven launchpad are facing steep losses following their token generation events, reigniting questions about post-TGE performance, valuation discipline, and whether early “alpha” around the platform has faded.

According to data shared by market participants, a number of Kaito-backed projects have suffered heavy drawdowns after launch.

Play AI, which debuted at a fully diluted valuation of about $50 million, is now valued near $2.1 million.

Hana Network dropped from a $40 million launch valuation to roughly $10.5 million, while Novastro fell from $50 million to just over $1 million. Bitdealer declined from $35 million to approximately $2.8 million.

The pattern has reinforced concerns about how early-stage valuations on social-driven launchpads translate once tokens begin trading openly.

Kaito Launchpad Faces Questions as Multiple Tokens Sink After TGE

The weakness has not been limited to newly launched projects. Several tokens that previously ran campaigns within Kaito’s ecosystem have also seen prolonged declines.

Boundless’ ZKC token is trading around $0.0995, down nearly 90% since its September launch.

Limitless’ LMTS has fallen more than 46% since October, Everlyn’s LYN is down over 71%, and Block’s BLOCK token has lost close to 70% from its launch levels.

Notably, tokens launched under Kaito Capital Launchpad, which aggregates these offerings, currently have a combined market capitalization of about $77.1 million, down nearly 15% over the past 24 hours, with roughly $38.3 million in daily trading volume.

Kaito operates an AI-powered information platform focused on “InfoFi,” where user-generated content, engagement, and on-chain activity are turned into structured data.

Its launchpad, sometimes referred to as the Yapper or Capital Launchpad, allows Web3 projects to raise funds and attention before and after their TGEs.

Projects set their own terms, including valuations and vesting schedules, while the community helps surface campaigns through staking, voting, and accumulated reputation points earned by creating content.

As Campaigns Falter, Pressure Builds Across the Kaito Ecosystem

Allocations are typically assigned during a preferred phase before opening remaining slots on a first-come basis.

Criticism has grown around how some of those campaigns have played out. Analysts have pointed to full token unlocks at TGE as a key contributor to sharp sell-offs.

One crypto analyst noted that projects releasing 100% of supply at launch effectively place all issuance into circulation at once, leaving little buffer against immediate selling pressure.

Others highlighted that public sale valuations often left little upside once tokens began trading.

Creator relations have also become a flashpoint.

Community members tracking campaign outcomes said dozens of projects either altered reward terms or delayed distributions after campaigns concluded, while others launched without clear timelines or structures.

Only a minority were cited as having delivered rewards as originally communicated. These disputes have added friction between creators and project teams that relied on Kaito’s engagement engine for visibility.

The broader sentiment shift has weighed on Kaito’s own token. KAITO is trading near $0.50, down more than 56% over the past three months.

The token is now roughly 83% below its all-time high of $2.88, though it remains slightly above its historical low.

The downturn has been accompanied by visible strain inside the ecosystem. Yapybaras NFTs tied to the platform fell to around 0.38 ETH, and upcoming token unlocks scheduled for December 20 have added to near-term caution.

At the same time, some holders have pointed to recent platform updates aimed at tightening verification, reducing low-quality content, and increasing transparency around participation rules.

Kaito recently outlined changes focused on on-chain identity checks, stricter reputation thresholds, and new verification methods designed to reduce manipulation and bot-driven engagement.

The company said its system is evolving in response to feedback, with further adjustments expected.

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