Data Revealed: The key to the success of encryption projects is not social engagement but rather product value.

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Unveiling the Truth Behind the Success of Crypto Assets Projects: Data-Driven Insights

In the Crypto Assets community, there are many "secrets" circulating about how to successfully issue tokens. However, these widely circulated suggestions may not be as effective as imagined.

A recent analysis conducted by a research institution delved into 50,000 data points from the issuance of 40 major tokens in 2025. The results indicate that many widely accepted strategies do not actually yield the expected outcomes.

The truth that crypto KOLs won't tell you: Four major illusions of new project launches and data debunking

The Myth of Participation

Many project teams invest a lot of money in social media engagement, including likes, retweets, comments, and so on. However, research shows that these metrics have almost no correlation with price performance. The results of the regression analysis show that the correlation coefficient R² between engagement metrics and price performance is only 0.038, which means that engagement hardly explains the success or failure of the tokens.

Interestingly, likes, comments, and shares are actually slightly negatively correlated with price performance. This suggests that projects with higher engagement can sometimes perform worse.

Low circulation does not equal success

It is widely believed that issuing with a very small circulation supply can create scarcity, thereby driving up prices. However, data shows that the percentage of initial circulation compared to total supply has no correlation with price performance.

What really matters is the dollar value of the initial market capitalization. Research has found that for every 2.7 times increase in initial market capitalization, the price performance in the first month decreases by about 1.56%. This relationship is so close that it can almost be considered causal.

Misunderstanding the Scale of Financing

Many people believe that raising large amounts of capital from well-known investment institutions is a guarantee of success. However, data shows that there is no significant relationship between the amount of financing and the performance of the tokens.

In fact, the more funds raised, the higher the valuation typically means, and therefore, it requires overcoming greater selling pressure. Additional funds do not automatically translate into better token performance.

Misconceptions About Timing of Issuance

Traditional views suggest that the most important news should be released during the project launch week to maximize hype. However, data shows that this practice is not wise.

After the project launches, user participation often declines. Those projects that can maintain good performance usually established their reputation before the launch, rather than relying on the brief attention during the launch week.

Truly Effective Strategies

Research shows that the following factors are more critical to project success:

  1. Actual product utility: projects that can naturally generate content perform better.
  2. Trading Retention Rate: Tokens that maintain trading volume after initial hype tend to perform significantly better in price.
  3. Reasonable initial market value: This is the strongest predictor of success. Listing with a reasonable valuation allows for growth potential.
  4. Authentic communication: A consistent tone that aligns with the product is more likely to earn user trust.

Why do traditional views go wrong?

This cognitive bias is not malicious but stems from structural issues. Social media rewards engagement rather than accuracy. Many opinion leaders have never personally issued coins, and their advice may lack practical foundation.

The Real Practices of Successful Projects

According to the data, successful projects typically:

  • Focus on building products that people really want to use
  • Adopt reasonable pricing at the time of token issuance
  • Communicate sincerely with the audience
  • Focus on the truly important metrics, rather than superficial social media data.

Taking a certain blockchain project as an example, they focus on technical explanations and educational content, rather than pursuing a high number of followers. As a result, they achieved a 150% increase in the first week after launch.

In contrast, projects that invest heavily in social media marketing often see their tokens perform poorly, as users do not truly understand or care about their products.

Ironically, while many projects cater to social media algorithms, the truly successful ones are those that focus on building valuable products and adopting smart issuance strategies.

Overall, the success of crypto assets projects relies more on solid products, reasonable pricing, and sincere communication, rather than superficial marketing tactics.

The Truth That Crypto KOLs Won't Tell You: The Four Major Illusions of New Project Launches and Data Refutation

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SerumSquirtervip
· 07-17 01:00
What's the use of hype? It's all just an empty shell.
View OriginalReply0
GasFeeCrybabyvip
· 07-14 02:57
Hehe, the project party is busy building the system and hasn't forgotten to save the suckers.
View OriginalReply0
SelfCustodyBrovip
· 07-14 02:57
It's just too real, okay?
View OriginalReply0
fren.ethvip
· 07-14 02:55
Honestly, it’s commendable.
View OriginalReply0
0xTherapistvip
· 07-14 02:50
The truth has opened its eyes
View OriginalReply0
ZenChainWalkervip
· 07-14 02:38
Those who deal with money are all虚.
View OriginalReply0
BearHuggervip
· 07-14 02:37
The essence of value determines everything.
View OriginalReply0
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