This thing about Connext is a bit strange.
- Multiple rounds of financing, with a total financing amount of $21.7 million, the investment institutions are good in terms of strength and quantity.
- Connext's predecessor is xPollinate, which many people used last year and the product was quite good (based on last year's experience).
- The total TVL of various chains is currently $12.52 million (according to official sources), but due to the bear market and competition from other cross-chain bridges, the data is not very impressive.
- Connext currently only supports 6 chains, which is not very competitive among many cross-chain products, especially with the popularity of L2 this year.
- The current market environment is very poor, and it is unclear why they chose to launch the token at this time (pressure from investors? other reasons?). Undoubtedly, launching the token during this period is against the trend, and it will be very difficult to create momentum and market making.
So why is Connext still doing this?
Here are some speculations for entertainment purposes only:
- The product has been running for a long time, but the popularity has been declining and the revenue data is not ideal.
- The initial target market of the product was more focused on EVM, and there was not enough emphasis on L2, which resulted in missing out on the benefits of L2 this year.
- Other competitors have risen rapidly, and there is no longer a first-mover advantage, and the future is clear.
In this situation, for investors, timely "cutting losses" may be a good choice, so they chose to launch the token at this time. To create momentum for the token launch, it is difficult to make a big splash in the current market by simply announcing the token launch. So they took a different approach, turning the negative into a positive. With the increase in momentum, the speculators are targeted, and those buying the token don't have to worry too much about airdrop selling pressure. Investors can also be happy, and that's enough.