Renowned crypto journalist Colin Wu predicts that several key projects from different sectors are preparing for their token generation events (TGE) in the second half of 2024.
Wu’s list includes several categories, including but not limited to staking, re-staking, and liquid staking.
Babylon and Symbiotic: The Best Staking and Restaking Projects with TGE Potential
One project that stands out from Wu’s potential TGE list is Babylon, a well-known player in the Bitcoin staking protocol space. The protocol recently launched a new testnet phase, Cap 3, which includes a fee adjustment mechanism. This milestone follows Babylon’s impressive $70 million funding round, backed by major investors like Binance Labs and Paradigm.
Read more: What is liquid staking in cryptocurrency?
For redistribution projects, Wu includes Karak and Symbiotic on his potential TGE list. Notably, Karak has raised $51.25 million from notable investors like Pantera Capital and Lightspeed Venture. Meanwhile, Symbiotic has backing from Paradigm and the Cyber Fund.
Puffer Finance, Swell Network, and Stake Stone are leading the way in the liquid staking derivatives (LSD) space. Wu noted that Puffer Finance has raised $24.15 million with support from Binance Labs and Jump Crypto. Additionally, with $3.75 million in funding from Framework Ventures and IOSG Ventures, Swell Network aims to unlock liquidity and increase staking rewards.
StakeStone is also positioning itself as a promising LSD project, backed by Binance Labs and OKX Ventures. The project aims to revolutionize the LSD space with solutions that improve liquidity and staking rewards. While details about StakeStone’s funding and features remain scarce, its inclusion on Wu’s list highlights its potential.
Experts have highlighted staking and restaking, especially liquid staking and liquid restaking, as the next big crypto narratives in 2024. An April report from Coinbase highlighted that restaking could change the incentives of validators, potentially opening up new opportunities and introducing complex risks. Therefore, the crypto community is eagerly awaiting the TGE of these staking-related projects due to their potential to change the decentralized finance (DeFi) ecosystem.
Despite the optimism surrounding the potential TGE of these tokens, it is worth noting that venture capital firms are backing some of the aforementioned projects. Venture capital firms often “exit” their investments in crypto startups after they have grown in value over time to make a profit.
In crypto, exits also occur through token launches, which are harder to quantify but represent a variety of venture capital liquidity events. Several major crypto projects have been labeled as “venture-backed” through their tokenomics.
Additionally, a recent discovery by pseudonymous crypto researcher Flow found that over 80% of tokens listed on Binance have dropped in price since their listing in the last six months. Interestingly, these new listings are tokens backed by leading venture capital firms and listed at high valuations.
Read more: Ethereum Restaking: What is it and how does it work?
“More often than not, tokens launched on Binance are no longer investment vehicles — all their upside has been exhausted. Instead, they are exit liquidity for insiders who benefit from retail investors’ lack of access to quality early investment opportunities,” Flow said.
