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MMT Token TGE and Its Impact on the Market: Analyzing Tokenomics and Investor Attitudes Toward New Crypto Assets

MMT Token TGE and Its Impact on the Market: Analyzing Tokenomics and Investor Attitudes Toward New Crypto Assets

Bitget-RWA2025/11/22 19:06
By:Bitget-RWA

- MMT's November 2025 TGE saw an 885% price surge but a 34.6% weekly decline due to unlocks and macroeconomic factors. - Tokenomics allocated 42.72% to community, 24.78% to early investors, creating liquidity risks as large unlocks pressured prices. - Institutional backing and airdrops fueled initial FOMO, but U.S. government shutdown risks and Bitcoin dominance eroded altcoin liquidity. - Long-term sustainability questions arise from lack of intrinsic scarcity and reliance on macroeconomic stability amid

The Token Generation Event (TGE) for Momentum (MMT) in November 2025 sparked both enthusiasm and caution throughout the crypto sector. Debuting on Binance, MMT’s price initially soared—jumping 885% above its initial value—demonstrating the unpredictable swings typical of new digital assets and the complex relationship between tokenomics and investor behavior. Yet, a sharp 34.6% drop the following week, triggered by token unlocks and broader economic pressures, revealed the vulnerability of such ventures. This review explores MMT’s tokenomics, its influence on market trends, and what it signals for investor attitudes within the cryptocurrency landscape.

Tokenomics: Balancing Opportunity and Risk

MMT’s tokenomics feature a total supply of one billion tokens, distributed as follows: 42.72% for the community, 24.78% for early backers, 18% for the team, and 13% for ecosystem development

. While this allocation highlights community involvement, it also brings certain risks. For example, the release of 20.41% of tokens at TGE—paired with a 12-month lockup for team and investor allocations—created a liquidity surge that the market struggled to absorb. Early investors alone sold off 89.47 million tokens, valued at $24.3 million, within weeks after the TGE . Such significant unlocks, a common occurrence in crypto, often lead to downward price pressure, as seen with MMT.

The project’s airdrop approach adds further complexity to its long-term prospects. Binance’s HODLer Airdrop distributed 0.75% of the supply to

holders, while Sui-based airdrops targeted accounts . Although these strategies aim to expand user adoption, they also risk increasing the circulating supply and reducing token value. A buyback initiative introduced in November 2025 was unable to counteract falling TVL and protocol revenue, highlighting the limitations of such measures after TGE .

Investor Sentiment: The Volatility of Hype and FOMO

The initial excitement around

was driven by institutional support and targeted airdrops. Major players such as Coinbase Ventures, OKX, and Jump Crypto helped push the project to a $100 million valuation, while Binance’s Prime Sale rounds drew in retail participants . This set off a feedback loop: institutional trust fueled retail FOMO, and retail buying further accelerated price gains. On November 4, the token climbed 488% within its first hour of trading .

However, psychological factors soon clashed with broader economic developments. With a potential U.S. government shutdown and

dominance reaching 58.45%, liquidity for altcoins dried up . Retail investors, chasing quick profits, were exposed to liquidity challenges as the price dropped to $0.272 by November 21. Technical signals, such as the RSI falling to the 30–28 range, indicated possible stabilization between $0.30 and $0.36 . Still, bearish outlooks—including a short-term target of $0.344—reflected doubts about MMT’s ability to maintain its value .

Long-Term Outlook: The Challenge of Utility and Flexibility

MMT’s future depends on whether it can deliver practical utility. The project’s goal to establish a financial operating system on

, with plans for cross-chain integration, is bold but remains untested . Unlike deflationary models such as LivLive ($LIVE) or Verasity (VRA), which link token value to ecosystem activity and burning mechanisms, MMT’s structure lacks built-in scarcity . This raises concerns about its competitiveness and ability to hold value over time.

Analysts warn that MMT’s prospects are closely tied to overall economic conditions and regulatory developments. For example, the 2025 government shutdown and changing monetary policies could heighten volatility, making it harder for projects to gain lasting traction

. Furthermore, while institutional investment can provide short-term momentum, it may not ensure long-term stability if the macro environment worsens.

Conclusion: Lessons for New Crypto Projects

The MMT TGE serves as a case study in the forces shaping new digital assets: innovative tokenomics and the psychological patterns of investors. While its early performance showcased the influence of institutional support and airdrop-driven enthusiasm, the rapid decline in price exposed weaknesses in liquidity and the need for genuine utility. For those investing in crypto, the takeaway is clear: it’s essential to look beyond short-term excitement and carefully assess the sustainability of tokenomics and the impact of broader economic risks. As the industry matures, projects like MMT must demonstrate adaptability and real-world value to thrive in an environment where liquidity, trust, and utility are critical.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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