The surge in crypto token launches has sparked concerns about market liquidity

There were more than 600,000 crypto token launches in January 2025, a 12-fold increase compared to January 2024

January 2025 saw more than 600,000 crypto token launches, a 12-fold increase compared to January 2024. The surge, fueled by platforms like Pump.fun, which simplify launches and let inexperienced traders enter the market quickly, has sparked concerns about market liquidity. At the same time, more than half of the cryptocurrencies launched from 2021 to early 2025 disappeared, and the percentage of failed tokens reached that same level between January and May 2025.

Only the best survive

Unlocking token potential is indisputably harder than launching tokens, which is as simple as sending an email at this point. Launching tokens with actual use cases, connected to services and products people can use, takes a great deal more effort. Tokens add layers of intricacy to a company's day-to-day operations, and a launch is either irreversible or requires an unjustified effort. Launching a token prematurely is the most common mistake a Web3 project can make, and it is often fatal, so any project aiming for launch must establish why and how it intends to perform the process.

There's also the issue of timing the launch. This isn't so much about setting a date as it is about establishing the time frame when a project is positioned to overcome commercial, legal, and operational challenges.