Ninety-five percent of all crypto tokens ever launched were not needed, according to Sergei Novikov, Chief Product Officer at 8Blocks. Most teams launched them out of convention rather than product necessity.

Novikov shared the assessment in an interview with BeInCrypto, where he also explained why growing Web3 products often fail to lift their own token value, and why tokenomics audits should follow the path of smart contract security reviews.

When a Product Thrives But Its Token Does Not

One of the most persistent misconceptions in Web3 is that a growing product means a growing token. According to Sergei, that link is rarely automatic.

“You can have a product with the users, with TVL, with revenue, a lot of transactions and so on, but the token may not benefit from it”, he told BeInCrypto.

The missing piece is whether the token actually captures any of the value the product generates. 8Blocks built its methodology around a concept called token product linkage, a measure of how directly product activity translates into token demand. The firm uses it to evaluate token models and identify structural risks.

The question founders and investors should ask is straightforward. If the product grows bigger, why would the token become more useful or more demanded? If there is no clear answer, the token may be disconnected from the business entirely.

Red Flags Investors Should Watch Before Buying

Sergei Novikov outlined several warning signs for investors evaluating new launches. Weak utility described only in a white paper is a recurring problem. Promises that look good on paper often deliver nothing once the token goes live.

Other red flags include high fully diluted valuation (FDV) paired with low circulating float, large scheduled unlocks with no visible source of future demand, and a product that functions perfectly without its own token. Perhaps most telling is when most demand comes from rewards, airdrops, or speculation rather than genuine product usage.

The core test is simple. Can the product be used without the token? If yes, that is a structural problem the white paper cannot fix.

Why Tokenomics Audits Should Be the Next Industry Standard

Most teams, Sergei argues, over-invest in making the token generation event (TGE) successful and under-invest in what sustains the token for the following months and years. The TGE is one day. Healthy token demand requires years of deliberate design.

“A project can have secure code but still have a broken economic model”, Novikov said.

He drew a direct parallel to smart contract audits, which are now effectively a requirement before any credible launch. Tokenomics audits should reach the same status. A team that publishes an economic audit signals to its community that it takes long-term token performance seriously, not just on launch day.

8Blocks works with Web3 teams on tokenomics design, audit, and improvement. The firm also advises projects on whether a token is warranted at all. It is a question Novikov believes far more founders need to ask before going to market. 8Blocks shares updates and research on X.

Источник: BeInCrypto