Cryptocurrency Industry Faces Alarming Rise in Unsustainable Token Models

A study conducted by 21Shares has shed light on a pressing issue in the cryptocurrency industry: unsustainable token models. The research, led by Darius Moukhtarzade, a leading researcher at crypto exchange-traded product issuer 21Shares, analyzed hundreds of digital assets across multiple blockchain networks.

The findings indicate that many new tokens lack fundamental economic mechanisms necessary for long-term viability, creating systemic risks for investors and the broader blockchain ecosystem. This trend is particularly concerning as institutional capital increasingly enters the digital asset space, demanding more robust financial products and sustainable tokenomics.

Moukhtarzade emphasized the need for stable token issuance strategies that directly link tokens to core protocol functions, such as protocol revenue integration, governance utility, and regulatory compliance. He also highlighted the importance of transparent token supply plans with extended vesting schedules, which can promote healthier price discovery mechanisms and reduce artificial scarcity manipulation.