Analysis: "Most token failures are due to regulatory evasion."

Alex Kruger, a cryptocurrency analyst, analyzed the reasons why most cryptocurrency projects fail through X. He explained, "Because of the U.S. Securities and Exchange Commission's (SEC) Howey Test and enforcement-based regulation, projects stripped all rights from their tokens to avoid securities classification. As a result, token holders had no legal recourse and founding teams had no fiduciary duties. Projects could freely use funds, change business directions, or even abandon the project midway without any responsibility." He added, "Venture capitalists (VCs) knew this structure and invested billions of dollars, effectively targeting individual investors as short-changers. Individual investors tired of this environment flocked to memecoins, but memecoins were even more speculative and opaque, which only reinforced the zero-sum gambling structure."