This is a contributor content by Ariel Asafov, Incubation Director at ChainGPT Labs.
In 2021, crypto was in full swing. Token valuations were soaring, seed rounds closed in days, and sometimes, a compelling narrative outshone the need for a working product. The market rewarded speed, speculation, and big ideas sometimes at the expense of long-term value.
Now, it’s 2025. The pace of innovation hasn’t slowed, but the climate has changed. Capital is more selective, users are more cautious, and the noise has quieted. And yet, many early-stage crypto startups are still operating like it’s 2021, raising large rounds early, launching tokens pre-product, and assuming community hype will fill in the gaps. It’s not that ambition is the problem; the playbook needs an update.
Why the Old Playbook No Longer Works
There’s a fundraising pattern that refuses to die: build a deck, create a compelling narrative, raise $5–10M, launch a token, and hope for network effects. It made sense during the bull cycle, when momentum could carry a project forward. But those conditions have shifted.
Today, traction matters more than potential. Investors are asking more challenging questions. Communities are sceptical. And significant raises without meaningful usage often send the wrong signal: that hype is outpacing progress.
Early funding can be a double-edged sword. Scaling teams and operations before a product-market fit has been validated is a risk. That can lead to bloated burn rates and pressure to grow prematurely, often resulting in projects that struggle to deliver on inflated expectations.
Form Doesn’t Replace Function
A common trap is treating tokenomics as a stand-in for strategy. While tokens can play a decisive role in aligning incentives and fueling ecosystems, they’re not a replacement for a product people want.
If your go-to-market is built around a token, not a solution, it might be time to revisit your roadmap. In today’s market, users and investors seek real utility, not just well-designed emissions charts. The projects gaining traction are the ones where the token supports a valuable experience, not where it tries to manufacture one. A good product can succeed without a token. But a token without a product? That’s a much harder story to sell.
Getting Smarter with Capital
Raising less and being more intentional isn’t a constraint; it’s a strategic advantage. Smaller rounds can drive sharper focus, more deliberate hiring, and faster iteration. The lean teams often move quicker, adapt better, and reach market fit without losing control of their direction.
At ChainGPT Labs, we work closely with founders to rethink their approach to funding. Rather than defaulting to large, pre-product raises, we help startups focus on go-to-market strategy and smart automation. That might mean using AI agents to reduce dev overhead, simulating user behaviour before shipping features, or testing token models in safe environments before they go live.
We encourage founders to stay curious, not overcommit too early, and see capital as one of many tools, not the goal itself. Execution is now the real differentiator, not the size of the raise.
Rethinking What Success Looks Like
The Web3 space isn’t in decline; it’s in evolution, and the fundraising culture needs to evolve with it. That doesn’t mean playing small or thinking conservatively. It means aligning capital with stage, goals, and outcomes so teams can grow at the right pace and foundation.
At ChainGPT Labs, we’re optimistic about what comes next. We believe the standout projects of this cycle won’t be the ones chasing headlines, but the ones building quietly, deliberately, and with deep clarity on who they’re serving and why.
The market may not be as loud as it once was, but maybe that’s the opportunity. Less noise means more space to focus, experiment, and build something lasting.
(The author is the Incubation Director at ChainGPT Labs)
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