New protocols are launching everyday on different networks in the crypto space and the trend is likely to continue through this year. But does new protocol launch always add value to the network and stimulate user activity and engagement?
My recently published article on Cointelegraph here focuses on Terra chain and discovers that the price of LUNA often increases right after the new protocol’s pre-launch phases start.
It also finds that new protocol launch does not necessarily always add value to the network, as shown in the comparison between the recently launched protocol Astroport and Mars, which have very similar pre-launch strategies but very different outcomes post launch.
The incidents on the launch day for Mars jeopardise the user confidence in the protocol and have made it difficult to attract liquidity and maintain user activities since the launch.
Red Bank and Fields have both failed to maintain trading volumes after the airdrop. For more details, read my article “Wonky Mars Protocol launch shows ecosystem expansion may not add to network value” on Cointelegraph.
