New analysis from MEXC Research reveals that structural vulnerabilities and recent exploits threaten to undercut investor confidence. The report “From ICO to Launchpad” highlights how centralized platforms like MEXC, Bybit, and Gate.io continue to dominate distribution volume — though access remains uneven. MEXC itself used a dual-pool model to launch five projects in Q2 2025, generating an average return of 10.83x, without VIP tiers or staking restrictions. Bybit’s Xterio launch, with an impressive 14.71x return, required users to meet high-tier criteria, while Gate.io’s nominal 1 USDT minimum entry still favored stakers via early snapshot allocation.
Decentralized launchpads, including Pump.fun, have seen a surge in retail participation due to open-access formats. However, the recent flash-loan exploit that drained approximately 12,300 SOL (~$2 million) on Pump.fun serves as a stark reminder of their security weaknesses. Despite rapid contract updates, the incident underscores the vulnerability of zero-barrier token launches to manipulation and loss.
MEXC Research points to other pressing concerns: inflated fully diluted valuations (FDVs), restrictive token supplies at launch, and swift post-listing sell-offs that benefit insiders at the expense of broader participants. The pattern mirrors echoes of the 2017 ICO cycle, raising alarms about sustainability.
To tackle these pitfalls, MEXC identifies promising guardrails in emerging models: allocation based on community contribution rather than capital, dynamic launch pricing, and CEX-led incubation that combines token sales with liquidity and marketing support.
With over $2 billion in crypto heists recorded in H1 2025 and DeFi platforms like Pump.fun under scrutiny, the space is witnessing a reckoning. MEXC Research concludes that unless launchpads strengthen access fairness and security, they risk repeating past cycles of hype followed by crash, both in investor trust and asset values.
