The world of token issuance is undergoing rapid transformation in 2025, shaped by evolving regulatory landscapes, technological innovation, and shifting market dynamics. From decentralized platforms redefining community ownership to high-profile legal battles over fraudulent launches, the space reflects both immense opportunity and significant risk. This article explores key developments across the ecosystem—including new funding rounds, governance models, compliance efforts, and strategic shifts—offering a comprehensive look at how projects are launching tokens, engaging users, and navigating an increasingly complex environment.
Emerging Platforms Reshaping Token Launch Mechanics
Innovative platforms are emerging to address long-standing issues in token distribution, such as unfair allocations, lack of sustainability, and weak community incentives.
One notable example is Cooking.City, a Solana-based token issuance platform that recently secured $7 million in funding from prominent investors including Jump, CMT Digital, and Mirana. The platform introduces a novel model centered on value redistribution: instead of retaining platform fees, Cooking.City channels most of them back to developers and users. Its "confidence pool" mechanism requires issuers to lock funds in smart contracts upfront, signaling commitment and reducing rug-pull risks. Additionally, its social-based reward system incentivizes organic growth through referral commissions while funding long-term platform development.
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Another major player entering the space is Raydium, which launched LaunchLab, a no-fee, permissionless token creation tool built on Solana. Using a “JustSendIt” model, creators can deploy tokens instantly and raise SOL with immediate liquidity migration into Raydium’s AMM (Automated Market Maker). For every transaction on tokens launched via LaunchLab, 1% fees are split equally between community rewards (50%), RAY buybacks (25%), and operational costs (25%). This approach lowers barriers to entry while aligning economic incentives across stakeholders.
Regulatory Progress and Institutional Adoption
Regulatory clarity remains one of the most critical factors influencing the future of token issuance. In 2025, South Korea is making significant strides toward legitimizing security token offerings (STOs). Two STO-related bills submitted by lawmakers Min Byeong-deok and Kim Jae-seop have advanced to the Standing Committee for Political Affairs. With strong support from newly elected President Lee Jae-myung, there's growing optimism that the legislation will pass, ending the de facto ban on blockchain token issuance that has been in place since the late 2010s.
If enacted, the law would establish a compliant framework for institutions to issue asset-backed tokens in sectors like real estate, commodities, and intellectual property—areas where Korean firms have already prepared numerous STO-ready projects. This development signals a broader global trend: traditional finance is increasingly embracing blockchain-based instruments, provided they operate within clear legal boundaries.
Meanwhile, RWA (Real World Assets) platform Kula has successfully launched its governance token KULA, now trading on MEXC and other exchanges. Unlike speculative tokens, KULA grants holders direct voting rights over investments in tangible assets such as Zambian farmland, Nepalese hydropower, and Malaysian minerals. The platform uses a hybrid Web2.5 compliance model—leveraging smart contracts on-chain while maintaining legal enforceability through entities in the Cayman Islands, Mauritius, and Singapore.
Legal Scrutiny and Investor Protection
As the token economy expands, so does regulatory and legal oversight. High-profile lawsuits highlight the risks associated with opaque or misleading launches.
FTX, despite its own past controversies, is now taking legal action to recover digital assets owed to its estate. The FTX Asset Recovery Trust has filed lawsuits against NFT Stars Limited and Kurosemy Inc. (Delysium) for failing to deliver promised tokens post-bankruptcy. FTX warns that more legal actions may follow if other issuers do not cooperate—underscoring the importance of transparency and contractual obligations in token distribution agreements.
On another front, M3M3, a token launched on the Meteora platform, is facing a class-action lawsuit led by Burwick Law and Hoppin Grinsell. Investors allege fraud and securities violations during the token’s release. Similarly, Burwick Law has also filed suit over the LIBRA token launch, accusing Kelsier Ventures and KIP Protocol of orchestrating an unfair sale that misled retail buyers.
These cases emphasize a growing demand for accountability in decentralized finance. While blockchain enables open access, it does not eliminate the need for ethical conduct or regulatory compliance—especially when public funds are involved.
Strategic Shifts: From Tokens to IPOs?
A growing number of Web3 companies are reconsidering their capital-raising strategies. While token issuance was once seen as the default path for crypto startups, some now view IPOs as a more sustainable route to long-term growth.
Michael Saylor of Strategy (formerly MicroStrategy) argues that many so-called "decentralized" projects aren’t truly interested in decentralization—they’re seeking access to capital markets without the burden of securities regulation. He notes that issuing digital tokens allows teams to raise funds quickly but avoids the costly compliance requirements of formal securities registration.
However, as scrutiny intensifies, even early advocates of unregulated token sales are calling for clearer rules. a16z, a leading crypto venture firm, urged the U.S. SEC during a recent policy meeting to provide clear guidance on token issuance. They argue that without regulatory certainty, American innovators will be forced to issue tokens only to non-U.S. investors—effectively transferring ownership of U.S.-developed blockchain technology overseas.
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Community-Driven Incentives and Ethical Launches
Despite challenges, positive momentum continues with initiatives focused on empowering builders and fostering trust.
Believe, a token issuance platform, announced a $1 million fund dedicated to supporting high-potential developers through scholarships, hackathons, and targeted incentives. This move reflects a broader industry shift toward nurturing grassroots innovation rather than relying solely on speculative launches.
Similarly, Hifi Finance recently passed a governance proposal to issue an additional 25 million HIFI tokens under its v3 upgrade. The new tokens will unlock gradually over 21 months, aiming to sustain ecosystem growth without sudden inflation shocks—a measured approach compared to earlier “dump-and-run” models.
Even amid controversy, figures like Gavin Wood, founder of Polkadot, reaffirm cautious stewardship. When asked about launching a JAM protocol token, Wood stated he has no intention of doing so—and believes Parity and Web3 Foundation should avoid it unless it brings clear net value to DOT holders. His stance underscores a maturing philosophy: new tokens should complement existing ecosystems rather than exploit hype.
Frequently Asked Questions (FAQ)
Q: What is token issuance?
A: Token issuance refers to the process of creating and distributing digital tokens on a blockchain. These tokens can represent utility within a platform, governance rights, or asset ownership—and are often used to fundraise or incentivize user participation.
Q: How are security token offerings (STOs) different from ICOs?
A: STOs are regulated offerings backed by real-world assets like equity or property, subject to securities laws. In contrast, ICOs (Initial Coin Offerings) were largely unregulated and often lacked legal oversight—leading to widespread abuse in earlier crypto cycles.
Q: Why are lawsuits increasing around token launches?
A: As investor awareness grows and regulators step in, projects making false claims or operating as unregistered securities face legal consequences. Class-action lawsuits serve as accountability tools for retail investors harmed by deceptive practices.
Q: Can a project be successful without issuing a token?
A: Yes. Some successful Web3 ventures choose IPOs or private funding instead. Token issuance isn’t mandatory—it should align with the project’s goals, user incentives, and regulatory environment.
Q: What role do launchpads play in fair token distribution?
A: Launchpads like Cooking.City or Raydium’s LaunchLab help ensure fairer distribution by reducing barriers to entry, enforcing transparency (e.g., locked liquidity), and rewarding early contributors through structured incentives.
Q: Is decentralization always the goal for token projects?
A: Not necessarily. While decentralization is a core principle of Web3, many projects use tokens primarily for fundraising or access control. True decentralization involves shared governance and distributed control—which few projects fully achieve.
👉 See how leading platforms are building fairer, more sustainable token economies today.