In the fast-evolving world of Web3, launchpads—platforms designed to help blockchain projects raise capital through token sales—have come under fire for functioning more as “cash-grab funnels” that fund speculative ideas rather than fully developed products. This critique, amplified in a September 28, 2025, Cointelegraph opinion piece by OpenServ CEO Tim Hafner, argues that many launchpads prioritize rapid fundraising over long-term viability, resulting in a flood of undercooked initiatives that fail to deliver substance. Originally intended as gateways for early investors to back innovative Web3 startups, these platforms have devolved into arenas of hype-driven token launches, often lacking rigorous vetting for technical depth or market readiness.
For crypto investors wary of rug pulls, developers seeking sustainable funding, and regulators eyeing the $3.2 billion Q1 2025 Web3 startup raises, this trend highlights a maturation challenge: How can launchpads evolve from speculative enablers to true innovation engines? With over 17,000 AI agent token launches via platforms like Virtuals Protocol by February 2025, the stakes are high. Let’s examine the core issues, real-world examples, and potential fixes.
The Problem: Launchpads as Hype Machines, Not Quality Filters
Launchpads like DAO Maker, Polkastarter, and Binance Launchpad were meant to democratize funding, connecting builders with global communities via Initial DEX Offerings (IDOs) or Initial Exchange Offerings (IEOs). However, critics contend they’ve morphed into “decentralized Shark Tanks” focused on short-term token distribution rather than product validation. Projects often secure millions with little more than a whitepaper or concept, bypassing the need for prototypes, audits, or user traction—echoing the dotcom bubble’s overvalued ideas sans execution.
Key criticisms include:
- Lack of Substance: Many funded projects lack “genuine, sophisticated tech” or clear token utility, leading to failures that erode investor trust.
- Cash-Grabs Over Support: Platforms take fees (5-20% of raises) but offer minimal post-launch aid, like mentorship or marketing, leaving builders unsupported.
- Hype Cycles: Superficial pitches dominate, with investors facing “half-baked” tokens amid regulatory gaps.
This model thrived in Web3’s early days, prioritizing community over growth, but as the market matures—with increased oversight—the flaws are glaring.
Real-World Examples: From Quick Wins to Epic Fails
The critique isn’t abstract; it’s backed by patterns in recent launches. In 2025, platforms like Gate.io Launchpad have spotlighted DeFi and AI projects, but many fizzle post-IDO. For instance:
- Virtuals Protocol: Enabled 17,000+ AI agent launches, but sustainability questions linger as many lack real-world application.
- Mid-Cap DeFi on DAO Maker: Projects like Astra Guild Ventures raised funds on promise alone, yet faced delays in mainnet delivery, highlighting the “fund first, build later” trap.
- Polkastarter’s Eco-Focused Raises: While innovative, some green token projects launched without audited smart contracts, leading to exploits and investor losses.
Contrast this with traditional VC paths, where ideas get rigorous due diligence before funding—Web3’s permissionless ethos enables speed but invites scams.
Calls for Reform: From Fundraising to Builder Ecosystems
Hafner and others advocate for launchpads to evolve into “complete ecosystems” with:
- Technical Guardrails: Mandatory audits, MVP requirements, and tokenomics reviews to ensure viability.
- Post-Launch Support: Incubators, mentorship, and liquidity bootstrapping pools (LBPs) like Fjord Foundry’s model.
- Ethical Alternatives: Platforms like OpenFundNet emphasize permissionless, transparent funding without insider biases, rewarding participation over speculation.
In 2025, trends like AI-integrated launchpads (e.g., Grayscale’s Q1 picks) and mission-driven ones (e.g., Seedify for eco-projects) show promise, but the industry needs “specialized infrastructure” beyond hype.
Conclusion: Time for Web3 Launchpads to Build, Not Just Hype
The assertion that Web3 launchpads are funding ideas, not products rings true in 2025’s landscape, where quick raises often eclipse substance, breeding failures and skepticism. Yet, with $3.2 billion raised in Q1 alone, reform could unlock sustainable innovation—prioritizing builders with real tech over fleeting tokens. As regulators tighten and investors wise up, launchpads must adapt or risk obsolescence. cryptotelegraph
