Monad unveils its layer 1 mainnet and MON token, launching below its ICO price with a market cap of around $260 million and low trading volume, reflecting limited interest despite high expectations.
Unprecedented Token Distribution Raises Concerns
The distribution of the supply triggers mistrust, with over 50% of the tokens held by the team, investors, and treasury, compromising the decentralization perception.
Lackluster Launch Sparks Doubts
The launch of MON was supposed to be a highlight for Monad, touted for months as a future heavyweight of layer 1 blockchains. Yet, from the first moments of listing, the tone was set: a price below the public sale benchmark, timid volume, and an overall sense of caution. MON starts around $0.0245, with approximately 10.83 billion tokens already in circulation, resulting in a market cap of about $260 million. On paper, the figure is impressive, but the momentum does not follow.
Low Trading Volume for an Expected Layer 1
Just $50 million in trading volume within the first 100 minutes. For a layer 1 token expected to attract crowds, it’s meager. Far too little. Recent launches, like Plasma, were devoured in a few blocks, creating an immediate FOMO effect. Here, none of that. No euphoria, no rush, just a market observing and hesitating. This tepidity is not by chance. MON’s ICO via Coinbase’s new platform had already hinted at something: sold at $0.025, it took much longer than expected to clear, despite its reduced 7.5% allocation of the circulating supply. An unusual delay that sent a clear signal: appetite was lacking.
Tokenomics: Controversial Supply Distribution
The tokenomics didn’t help matters. The supply distribution quickly sparked debates. On one side, an ecosystem holding 38.5% of the tokens, intended to fuel network growth. On the other, a Labs Treasury at 4%, an investor’s share of 19.7%, and notably a massive 27% allocation reserved for the Monad team itself. In other words, over half of the pie remains private, with over a quarter of tokens controlled internally. For an emerging layer 1, this weighty control can impact trust, especially in a market where investors have become more demanding. Critics argue that this disproportionate share creates potential price pressure and limits the perception of decentralization.
A Launch Far from Current Crypto Market Standards
Hyped Expectations Meet Harsh Reality Check
For months, Monad was touted as a highly performing solution capable of rivaling industry giants. The storytelling was solid, ambitions high, and the ecosystem was beginning to take shape. Then the market spoke, and it wasn’t kind. MON is already trading below its public sale price. Volumes are not keeping pace. Retail investors aren’t rushing in. The contrast with recent sector successes highlights the issue: in a selective market, hype is no longer enough.
The Real Question: Rebound or Warning?
MON is not doomed. The network is young, the ecosystem still needs to mature, and the initial months will be crucial in changing course. But for now, a stark reality sets in: Monad did not make a grand entrance. The market expected a rocket. It got a hesitant liftoff. The coming days will reveal if this launch was simply a false start… or a deeper misalignment between the technical narrative and investor trust.
