Why do crypto projects have such a high failure rate after launchpads?

Bear markets are a good time to reflect – and a question that isn’t asked often enough is this: Why do crypto projects have such a high failure rate… and how can they scale to increase their chances of success?

It’s a topic we’ll dive into during Cointelegraph’s latest ask-me-anything session on YouTube, where we’re joined by Qonetum Finance.

CEO and CTO Yoda Regev will be joined by our own Rachel Wolfson to discuss the challenges of new projects trying to get off the ground.

While CoinMarketCap data shows that thousands of token projects have completed seed funding or a token offering, Yoda claims that the big challenge comes when they need to raise additional capital and liquidity – a crucial step to scale.

It is worth noting that this is not just a crypto-specific problem – and according to this entrepreneur, 98% of startups fail because of this.

A new approach

Typically in the crypto ecosystem, projects have tokens that can be sold to generate capital – but they have to tread carefully. Offering discounts below current market prices can cause tokens to be dumped, crashing values ​​in a sudden and spectacular manner.

Yoda argues that bear markets exacerbate these risks – and any attempt to extract liquidity from pools ends up being seen as a blanket pull, fueling fresh panic. Projects looking to scale need safe and fresh solutions after a launch platform’s initial fundraising.

Qonetum Finance’s solution is a new ScalePad approach called a Post DEX offering based on quantum finance models – and the leader of this DeFi ecosystem will explain this concept in depth during the live broadcast.

Yoda will provide insight into how a hybrid of fundraising, strategic efforts and liquidity extraction can better serve crypto projects in both bull and bear markets – opening up new fundraising opportunities for operations and ensuring that capital can be safely disbursed.

Of course, YouTube viewers tuning in live will also be able to ask their own questions by putting it in the comments section.

How Qonetum Finance works

Qonetum says its goal is to reduce investment risk and increase the liquidity of illiquid assets – to create an efficient financial system based on quantum financing methods. With an ambitious roadmap and a pioneering approach, this is an ecosystem that firmly believes it will be at the forefront of the future of the financial sector.

Yoda is on hand to explain how and why both projects and users will be drawn to Post DEX offerings – and shed light on how new staking models can improve token prices and liquidity. He will also introduce how partners can receive an annual grant of $100,000 for their own ScalePad license.

Qonetum Finance’s live AMA will take place on Wednesday at 14:00 ET (18:00 UTC.) Head over to Cointelegraph’s YouTube page and smash the like and subscribe buttons for all future videos and updates.