ZORA Token Stumbles Post-Launch as Traders Sour on VC-Backed Hype

The launch of the $ZORA token this week was intended to be a milestone — a lighthearted, community-driven celebration for a platform aiming to revolutionize digital ownership. But instead of a breakout success, it quickly became the latest entry in a growing list of disappointing token debuts tied to venture-backed projects.

Within hours of launching late Wednesday, ZORA’s price soared briefly before tumbling more than 50%, mirroring the now-familiar pattern that traders have come to expect from low-float, high-valuation tokens backed by large funds.

ZORA was positioned as a creator-centric token — one that would support the tokenization of media like tweets, memes, and videos. But traders were quick to notice what it lacked: no governance rights, no defined utility, and no roadmap, save for the vague branding as “a token for fun.”

Even with over $1.7 million in on-chain liquidity and listings on major exchanges like Binance Alpha, the absence of substance beneath the surface led to swift sell-offs. “Sold my $ZORA, thanks for playin,” quipped user Faycytw on X, summing up the sentiment with a post featuring images of deleting the Zora app and blocking its profile.

The community’s skepticism wasn’t just about the token’s lack of purpose — it was also about who stood to benefit. Critics pointed to the project’s links to Coinbase Ventures and the Base network’s leadership, warning that everyday users were once again being used as exit liquidity for early insiders.

“VC-backed launches often follow the same formula — aggressive marketing, inflated valuations, and minimal available float,” said Nick Ruck, director at LVRG Research. “Once tokens list, they’re pumped by market makers, only to collapse under vesting pressure and a lack of real demand.”

Ruck also noted that the majority of recent tokens fail to offer compelling utility. “Governance rights or discount-based perks don’t create real buyer interest — especially in a market that’s grown more risk-conscious.”

Min Jung of Presto Research added, “The $ZORA launch underlines a broader issue in Web3: community-first branding without community-first execution. When transparency is absent and airdrops feel transactional, trust fades fast.”

Still, some see a silver lining. Despite the rapid decline, the token launched at a $73 million market cap — significantly lower than similar projects in previous cycles. That, according to trader CryptoKoryo, is a sign of a more discerning market. “Twelve months ago, this would’ve been a $500M FDV day one,” he noted. “Sentiment is different now. People aren’t chasing every shiny object.”

Despite the rocky start, Zora’s underlying platform still shows promise. Its NFT minting tools have continued gaining traction among creators and brands, and activity on the network has remained steady throughout the week.

As $ZORA trades near $0.02, short-term traders may find opportunities in the volatility. But longer term, the project will need more than playful slogans to build sustainable momentum. In today’s market, fun gets you noticed — but value is what keeps users around.