With new token launches happening daily, identifying projects with long-term potential has become increasingly difficult. As investors grow more selective, the focus is shifting back to fundamental strengths like transparency, solid token economics, and most importantly, real revenue. To understand what separates successful projects from the rest, crypto.news consulted with Maximiliano Stochyk, an executive at the token launchpad CoinTerminal who has helped founders raise over $25 million since 2014.

The Three Pillars of Project Credibility

According to Stochyk, three key “social proof indicators” are critical for building trust with both retail participants and institutional investors. The first is the quality of a project’s backers. Having strong venture capital firms or angel investors provides immediate credibility and signals that experienced players have vetted the project.

The second pillar is exchange listings. Stochyk notes that liquidity is essential, and a token listed only on a low-volume decentralized exchange (DEX) will struggle to attract serious buyers and may face high volatility. He recommends that projects secure at least one listing on a reputable centralized exchange (CEX) to gain necessary exposure and help balance the sell pressure from early investors.

Finally, distribution and promotion play a crucial role. Stochyk advises founders on their strategy with Key Opinion Leaders (KOLs) and influencers, noting that smaller influencers often yield better results. He explained that they typically have more engaged communities and higher levels of trust compared to big names, who can look good on paper but often underdeliver on results.

A Business First, a Token Second

A core principle for identifying a strong project is that it doesn’t rely on its token for survival. Stochyk emphasizes that the best projects often have an existing revenue-generating business, such as a Web2-based software-as-a-service (SaaS) product. In these cases, the token serves as a tool for governance, growth, or user incentives rather than being the primary source of funding.

“If your entire treasury is being built by selling tokens into the market, you’re creating long-term sell pressure with no natural buying pressure,” Stochyk warned. He pointed out that this model is unsustainable and eventually leads to the token’s value collapsing. One of the first questions he asks teams is about their revenue model, and he finds that most lack a clear answer, focusing instead on token price and hype. This approach, he argues, is dangerous. CoinTerminal is now seeing more established Web2 companies with real traction and product-market fit entering the Web3 space to raise capital and expand their user base, providing a much stronger foundation for success.

Transparency as the Ultimate Trust Signal

Stochyk also highlighted transparency as a critical factor, especially regarding treasury management and community communication. He believes founders should be open about their token supply, how funds are being used, and which wallets hold treasury assets. While on-chain visibility is helpful, proactive communication is even more important. Teams that openly address listing delays, token sales, or changes in their roadmap build trust. “Silence creates fear, rumors, and community distrust,” he stated, adding that the best-performing teams remain transparent even during difficult periods.

Navigating Current Market Narratives

Discussing current market trends, Stochyk identified Real World Assets (RWA) as the most dominant narrative, with projects bridging physical assets like real estate or commodities to the blockchain gaining significant traction. Artificial Intelligence (AI) also remains popular, though he cautioned that the market is becoming saturated with projects attaching “AI” to their name without a meaningful use case.

On the other hand, the GameFi sector is currently struggling to regain momentum after the play-to-earn boom. Stochyk also pointed to quantum computing as a strong emerging vertical, noting an increase in new layer-1 blockchains focused on quantum processing and data computation.

Key Advice for Decentralized Finance Investors

For investors navigating the Decentralized Finance (DeFi) space, Stochyk offered several pieces of advice. First and foremost is to conduct thorough, independent research. He urges investors to look beyond websites and verify information on-chain by examining smart contracts, wallets, and trading volume. Second, he stressed the importance of diversification to mitigate risks from hacks or platform failures, citing the collapse of FTX as a stark reminder.

He also warned investors to be skeptical of unusually high yields. Double-digit annual percentage yields (APYs) on stablecoins are often unsustainable and typically signal high risk. Finally, Stochyk highlighted the need for improved security and user experience, predicting that platforms that simplify wallet management and make the underlying DeFi technology invisible to the user will be the ones to drive mass adoption.

Disclaimer: The information provided in this article is for informational purposes only and does not constitute financial advice, investment advice, or any other sort of advice. You should not treat any of the website’s content as such. Always conduct your own research and consult with a professional financial advisor before making any investment decisions.