DWF Labs Emphasizes Products Should Not Be Built Solely Around Tokens
DWF Labs stated that products should not solely revolve around tokens.
The managing partner explained that what truly matters is the product's capabilities and operational readiness, rather than just the token narrative.
In market mechanisms, crypto capital is shifting from pure token launch projects to those with real products and operational infrastructure. Professional market makers and institutional investors like DWF Labs benefit, while projects with high FDV and low product maturity face pressure, with funds flowing towards protocols that address actual liquidity, settlement, and user retention issues.
Source: Public Information
ABAB AI Insight
DWF Labs, as a top market maker and VC, has previously criticized that over 80% of token launches drop 50-70% within 90 days post-launch. Managing partner Andrei Grachev has long promoted the idea that "product capability ≠ operational readiness" in media like The Rollup, emphasizing that institutional capital is shifting towards production-grade on-chain infrastructure.
In terms of capital pathways, DWF Labs focuses its market making, OTC, and DeFi fund resources on projects that solve liquidity, settlement, credit, and risk management issues, rather than just token narratives. By providing ecosystem support and liquidity, they help invested projects achieve user acquisition and retention, with a strategy aimed at avoiding the risk of token crashes at the end of cycles and capturing long-term value from real adoption.
Similar cases include the rapid demise of many meme/token projects in 2024-2025 and Hyperliquid achieving billions in trading volume through real perpetual products. The current crypto landscape is transitioning from a token-centric to a product and operation-driven phase, with institutions like DWF Labs accelerating this selection process.
Essentially, this represents a concentration of capital: the capture of crypto value is shifting from token issuance to real products that solve actual problems, with the mechanism being that user retention and institutional adoption require operational readiness rather than marketing-driven approaches. This leads to pricing power shifting from short-term token promoters to a few projects with sustainable products and liquidity management, along with the professional capital supporting them, while reducing systemic losses after overall industry bubbles burst.