New ZORA Token Struggles to Shine Amid Skepticism Over VC Involvement

ZORA Token’s Rocky Debut Reignites Debate Over VC-Backed Crypto Projects

What was pitched as a joyful celebration of Web3 creativity quickly turned into yet another cautionary tale. The highly anticipated launch of the $ZORA token — backed by Coinbase Ventures and promoted as a “fun” milestone for creators — has instead left traders disillusioned, with the token shedding more than 50% of its initial post-airdrop value.

Zora’s token, released late Wednesday, was meant to mark a step forward in content tokenization, allowing users to mint and monetize everything from tweets to memes. With over $1.7 million in on-chain liquidity and high-profile exchange listings like Binance Alpha, it seemed poised for a breakout moment.

But the optimism didn’t last. Traders quickly realized the token offered no clear utility, no governance function, and no roadmap — only a vague branding pitch: “a token for fun.” That framing, meant to be playful, quickly became the target of mockery as holders rushed to exit.

“Sold my $ZORA, thanks for playin,” posted trader Faycytw on X, alongside images of removing Zora from their wallet and blocking its social account — a tongue-in-cheek nod to how many users treat airdrop farming as a one-time transaction.

While Zora touted a community-first distribution model, allocations were still met with skepticism due to the project’s deep ties to Coinbase’s Base network and senior insiders. Many market participants saw a familiar pattern: early users exit quickly while new buyers, lured by marketing and liquidity, get left holding the bag.

Nick Ruck of LVRG Research said the launch fits into a troubling trend in the altcoin space: “VC-backed tokens often come with inflated fully diluted valuations, but only a tiny slice is made tradable. That’s a setup for short-term pops followed by sustained declines as more supply unlocks.”

Ruck added that limited real-world utility — often confined to low-pressure use cases like governance or minor perks — can’t support demand once the initial hype wears off.

Min Jung, a research analyst at Presto, echoed the concerns, saying, “Labeling a token ‘for fun’ without any substantive features sends the wrong message. When projects lean heavily on community branding but lack transparency or a vision, trust erodes fast.”

Still, some traders viewed the market response as a sign of maturity. “A year ago, this would’ve launched at a $500 million valuation,” said trader CryptoKoryo. “Today it’s closer to $50 million. That’s a good correction. People are no longer blindly buying into VC narratives.”

Despite the backlash, Zora’s broader platform isn’t being written off just yet. Its NFT minting infrastructure remains popular among creators, and recent activity shows continued interest from artists and digital brands.

As of Thursday morning, ZORA trades near the $0.02 mark, with a market cap of roughly $73 million. While short-term speculators might see an opportunity, the long-term success of the token will likely depend on whether Zora can deliver more than memes and hype.

Because in this market, fun might get attention — but utility is what earns staying power.