Monad Mainnet Launch: $269M ICO Success and Post-Launch Price Risks

Source: CryptoNewsNet Original Title: Monad price in focus as it raises $269M ahead of mainnet launch Original Link:

Monad Mainnet Launch and Price Outlook

Monad, a layer-1 network with EVM compatibility, raised $269 million in one of the most successful token sales this year. Over 85,000 participants purchased the MON token, demonstrating significant market momentum. The token sale was 1.43x oversubscribed, indicating strong investor interest.

The mainnet launch is scheduled for Monday, with the MON token set to begin trading on major exchanges. This listing will enable ICO participants and early investors to exit their positions, while also allowing newcomers who missed the initial offering to acquire tokens.

Monad’s value proposition includes over 200 validators, superior transaction speeds compared to competing networks, EVM compatibility, and partnerships with prominent projects including LayerZero, Pyth Network, and Chainlink.

Potential Price Risks Post-Launch

Despite the bullish fundamentals, several factors suggest the MON token price may decline following the mainnet launch:

Investor Exit Pressure: Historically, ICO investors often sell their tokens after the public launch. Notable examples include Pi Network and LayerZero, both of which experienced significant declines post-airdrop.

Venture Capital Liquidation: Early-stage investors including Paradigm, Dragonfly, Electric Capital, and Castle Island may realize returns by selling portions of their holdings.

New Token Launch Pattern: Market data shows that newly launched tokens frequently experience double-digit declines. Recent examples include Trump Coin, World Liberty Financial, Wormhole, Somnia, and Keeta.

Market Saturation: The layer-1 and layer-2 sectors are increasingly crowded, with established networks like Ethereum, Solana, and BNB dominating market share. Additional competition is expected from upcoming launches by major companies.

Unfavorable Token Distribution: Insiders and team members control over 50% of tokens, while the public sale represents less than 8% of total supply. This concentration creates potential for significant selling pressure.