These events, where a project offers its tokens for sale before listing on exchanges, are a way for projects to raise funds and build an initial user base. However, the allure of quick gains and the fear of missing out (FOMO) have led to a presale treadmill, where projects focus more on hype and short-term gains than building long-term value.
Presale hype machine
The cryptocurrency space has always been prone to hype and speculation. Presales have played a significant role in fuelling this trend. Projects often rely on aggressive marketing campaigns, flashy websites, and promises of astronomical returns to generate interest in their presales. This approach has proven effective in attracting investors eager to get in on the “ground floor” of the next big thing. However, this focus on hype and short-term gains has led to a shift in priorities. Instead of concentrating on building robust, sustainable products and services, many projects have become preoccupied with driving up token prices and trading volumes during and immediately after their presales. The result is a market saturated with projects that lack genuine utility and long-term vision.
Consequences of chasing short-term gains
The pursuit of quick gains and the pressure to deliver immediate returns have had detrimental effects on the DeFi ecosystem. Many projects have fallen victim to the “pump and dump” cycle, where token prices soar during presales and immediately after listing, only to crash soon after as investors cash out their profits. This cycle has eroded trust in the DeFi space, as investors become increasingly wary of projects that seem more focused on hype than substance. It has also contributed to the perception that DeFi is little more than a speculative bubble, prone to wild fluctuations and driven by greed rather than genuine innovation. How many presale stages are there in Retik? In Retik, there are typically three presale stages private, pre-sale, and public.
Robust technology and clear use cases
Successful DeFi projects should be built on robust, well-designed technology that addresses real-world problems and offers practical solutions. They should have clear use cases that demonstrate how their products or services add value to the lives of users and contribute to the growth of the DeFi ecosystem. For example, a project focused on decentralized lending should have a well-designed lending protocol that offers competitive rates, reliable security measures, and a user-friendly interface. It should also have a clear plan for attracting borrowers and lenders, incentivizing participation, and ensuring the long-term sustainability of the lending platform.
Commitment to sustainable development
Sustainable development should be a core principle for DeFi projects. This means that projects should focus on building products and services that stand the test of time, rather than chasing short-term gains. They should have a long-term roadmap that outlines their development plans, milestones, and strategies for achieving their goals. Sustainable development also involves building strong communities around projects. This is achieved by fostering open communication, encouraging user participation in the development process, and creating incentives for long-term engagement. By building a loyal and engaged user base, projects their products and services remain relevant and valuable over time.
