Token Launch Failure Rates Hit Record Levels as 21Shares Researcher Appears at EthCC

Token launch failure rates have hit record levels, with more than half of all tracked cryptocurrencies now classified as dead, and 21Shares researcher Darius Moukhtarzadeh is scheduled to address the crisis today at EthCC in a session focused on why launches fail and how to fix them in 2026.

What 21Shares’ Darius Moukhtarzadeh Is Scheduled to Cover at EthCC

EthCC’s official program lists Darius Moukhtarzadeh of 21Shares as a speaker at EthCC[9] on March 31, 2026. His session is titled “Why Token Launches Fail, and How to Get Them Right in 2026.”

The public session description states that token launches are failing at record rates and that the talk will present a practical framework for stronger token economies. No slide deck, transcript, or recording of the session was publicly available at the time of writing.

What the public EthCC description confirms

The confirmed scope is narrow. The EthCC listing describes a framework for better token design and launches, but the specific recommendations, case studies, and proprietary data that Moukhtarzadeh plans to present have not been disclosed by 21Shares in advance.

That said, the timing is notable. Major crypto conferences, including events like the Blockchain Futurist Conference returning to Toronto this year, are increasingly featuring sessions on token sustainability rather than hype cycles. The shift reflects a market that has moved past launch euphoria and into a phase of structural accountability.

The Data Behind Record Token Launch Failure Rates

The “record levels” framing is backed by hard numbers. CoinGecko’s research on failed cryptocurrencies found that 53.2% of all cryptocurrencies tracked on GeckoTerminal have failed.

53.2%

The year 2025 stands out as the worst on record. CoinGecko’s dataset shows 11,564,909 dead projects in 2025, compared with 1,382,010 in 2024. That single year accounted for 86.3% of all crypto coin failures recorded between 2021 and 2025.

86.3%

The sheer scale of the jump, from roughly 1.4 million dead projects to over 11.6 million in a single year, reflects the explosion of low-effort token creation enabled by launchpads like pump.fun and the broader memecoin wave.

Dead tokens versus tokens trading below TGE price

It is important to distinguish between two different failure metrics that often get conflated. CoinGecko’s figures count dead or abandoned projects on GeckoTerminal, tokens with no liquidity, no development activity, or no trading volume.

A separate measure looks at tokens that are still active but trading far below their token generation event (TGE) price. According to reporting citing DWF Labs and Memento Research, more than 80% of 2025 token launches traded below their TGE price, with typical drawdowns of 50% to 70% within roughly 90 days.

Both metrics point in the same direction, but they measure different things. A dead token has zero residual value. A token trading 60% below TGE is still alive but has destroyed most of its holders’ capital. Any serious discussion of failure rates needs to keep those categories separate.

Why Better Token Launches in 2026 Need Stronger Design and Disclosure

The convergence of dead-token data and post-TGE underperformance creates a clear market signal. Investors are demanding more from token issuers before committing capital, and the tolerance for poorly structured launches is shrinking.

Andrei Grachev of DWF Labs put the shift bluntly:

“Tokens won’t disappear, but we’re seeing a permanent bifurcation.”

That bifurcation is between tokens with real utility, transparent governance, and aligned incentives on one side, and disposable launch-day speculations on the other. The gap between those two categories widened sharply through 2025.

WeFi co-founder Maksym Sakharov pointed to what investors increasingly want: “cleaner ownership, clearer disclosure, and a path to enforceable rights.” That language echoes the broader regulatory direction seen in markets like Dubai, which recently set official rules for crypto exchange derivatives, prioritizing transparency and investor protection.

What investors should watch in the next wave of token launches

The EthCC session description says Moukhtarzadeh will offer a practical framework for better token design. While the specifics remain unpublished, the verified data makes the areas of focus predictable: distribution structure, vesting alignment, and post-launch liquidity management are where most failures concentrate.

The capital rotation is already underway. Reporting on the DWF Labs analysis notes that investors are shifting from opaque token launches toward regulated public-equity exposure, which offers audits, governance rights, and institutional-market access. That trend has been visible in recent ETF flow patterns as well, where even crypto-native capital is gravitating toward structured products.

For token issuers planning 2026 launches, the data leaves little room for ambiguity. With more than half of all tracked tokens already dead and the vast majority of recent launches underwater, the bar for credible issuance has moved permanently higher. Whether the framework Moukhtarzadeh presents at EthCC offers a workable path forward will become clearer once the session materials are published.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.