Monad's bad launch is simply due to an economic flaw in their tokenomics

A demand - supply inefficiency.

Let me break this down a bit so it guides you in further research and selecting projects in the future:

First of all, read & bookmark this short post i made about raise amounts and how & why i think lower ones would fly much harder:

Now, to the case:

1. Excessive supply -> High sell pressure:

Especially when combined with an already high FDV

When a project raises over $200M, most of the allocation goes to:

• VCs
• Private rounds
• Strategic partners
• Team

Even if these tokens were locked, they've already created an upward long term supply curve because they will still sell one day.

Basically, each vesting Epoch will introduce supply pressure REGARDLESS of current demand.

Long term and even short term, not a great bet.

2. VC influence:

Monad raised more in funding rounds than they did for the public.

And ontop of that, allocated more to the literally ecery other investor more than their community.

Double zero did similar, ICP did similar, both are nowhere to be found currently

VC cost basis is also lesser, essentially if a BULK of a projects funds were gotten at a lower FDV compared to the one available to the public, they're already in profit by default.

Monad aside, any team that has a dangerously high VC investment will not perform well long term, with the exception of a few.

3. Artifical Demand:

When you factor in that:

VCs bought over $200M worth of tokens,
Public also bought over $200M worth of tokens,

Who is left to buy? Where is the demand as against this large supply of tokens? Both long and short term?

There will be artificial demand at first much like the one you're currently seeing, characterised by:

• FOMO
• Market making

But after that, simply trying to price in a $3B FDV in this market with these metrics isn't feasible.

It couldn't even do a 2x

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N/B: This is in no way to FUD Monad, but like I said, if you take note of things, and apply them in your next research, you'd see positive changes

Gm.