Do Web3 projects need to launch tokens?

Recently, the MetaMask product leader clearly stated in public discussion that given launching tokens at the current stage cannot bring extremely effective market impact, and the product still needs to focus on improving user experience, token issuance is not considered for now. This statement has sparked extensive discussion, because in the crypto world, launching tokens has become the standard practice for most projects.

So what are MetaMask’s considerations behind not launching tokens? And what are the motivations for other projects to launch tokens? How to weigh the pros and cons of token launch for project development?

1. Launching tokens can quickly attract market attention and draw traffic, which helps projects achieve rapid valuation growth. This is the main motivation for most projects to launch tokens.
2. Token launching can also attract institutional funds and retail investor liquidity, forming a positive economic cycle.
3. In addition, designing token mechanisms to incentivize user participation and contribution also caters to the business logic of blockchain applications.

However, relying on token launch to achieve rapid appreciation is often short-term behavior. The long-term development of a project depends more on the intrinsic value of the product itself. If a project’s core competitive advantages lie in token price, once prices fall, the project loses motivation to continually attract users. Even from a marketing perspective, the hype triggered by token launch is often transient. Users’ sustained participation depends more on the real capabilities behind the product and brand.

In summary, the positive effects of launching tokens on project development may be over-exaggerated. For many projects, token launch is more of an icing on the cake — it can bring rapid appreciation in the short term, but in the long run, the disadvantages may outweigh the benefits. Projects also need to consider potential economic risks and legal compliance pitfalls.

Compared to directly launching tokens, a more advisable path is to focus on product design and brand building initially, construct a solid business loop in the middle stage, then consider token launch to inject new vitality into the ecosystem later, just like MetaMask’s choice — the quality of the product itself is the foundation.