Web3 Sustainability Questioned as Abstract, StandX and Edgen Scrap TGEs, Shut Down Services - bloomingbit
Ethereum layer-2 networks Abstract, StandX, and Edgen have scrapped their token generation events and announced service shutdowns, raising questions about the sustainability of Web3 models reliant on airdrop rewards.
Abstract, developed by Igloo (parent company of NFT project Pudgy Penguins), announced it will shut down on Dec. 15, citing stalled chain growth and lack of liquidity and profitability.
Abstract explained its growth was constrained by a limited DeFi ecosystem, weak liquidity, and muted institutional investment. After exploring ways to expand for a year, the team concluded sustainable operations as an independent blockchain would be too difficult, opting to wind down the chain in phases.
Other Projects Follow Suit
Around the same time, decentralized trading platform StandX announced on Oct. 15 that it was withdrawing plans to issue its own token. Despite telling users as recently as last month that the token launch was not being delayed, the project eventually abandoned the token plan. StandX now intends to distribute the stablecoin DUSD instead of a native token before shutting down the business.
AI-based financial intelligence platform Edgen also shut down on Oct. 12 without holding a TGE. The project accepted refund requests through Oct. 12, but some users later complained they were unable to check refund guidance after Edgen's official X account was shut down shortly afterward. One user reported losing $300 after purchasing Edgen's pro package without receiving a refund.
User Frustration Mounts
The cancellations have triggered significant frustration among users who had invested time and money expecting token rewards. Many had engaged in airdrop farming—depositing assets, joining testnets, and checking in regularly—often incurring costs like gas fees with no guarantee of returns.
The structure itself was flawed because it drew users with the expectation of making money rather than the competitiveness of the service.
Critics point to inadequate risk disclosure, with projects often attracting users through flashy marketing while failing to sufficiently communicate the possibility of shutdown or associated risks. Edgen's participation in Kaito's leaderboard, which rewards social-media activity related to digital assets, has led to particular refund complaints from users who purchased VIP and annual subscription packages to boost their rankings.
Market Shifts Focus
Byun Chang-ho, who runs the Telegram community 'Byun Chang-ho Coin Academy,' noted that regulatory and market standards are changing. He emphasized that the industry now needs projects with real business viability rather than ones sustained solely by expectations of a token launch.
Projects now need real business viability, not just token-launch hype.
The trend reflects a broader market shift where Web3 projects must demonstrate sustainable business models beyond token incentives. As the industry matures, investors and users are increasingly demanding projects with genuine utility and long-term viability rather than speculative token rewards.
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