Unruggable token launches can save crypto — Here’s how

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When Bitcoin (BTC) was introduced in 2009, it offered a glimmer of hope that money could be free from centralized control and managed by the people in a decentralized, trustless way. And blockchain was the silver lining that would bring that decentralized ethos to industries ranging from healthcare to education and even governments.

Tokens have since become powerful instruments for the startup economy — as fundraising vehicles, tools for engaging and empowering communities, and even as liquid markets for startup exits and sales. Tokenization has lowered the barrier to entry for startup founders and investors alike.

But along the way, systemic failures have laid bare the vulnerability of trust in a trustless world. Rugs, scam tokens and exploitative projects have become a rampant threat to the promise of progress. The first quarter of 2025 saw nearly $6 billion lost to rugpulls, 65 times higher than Q1 2024. This has created a toxic climate in which communities have grown skeptical, and investors are holding back.

Governance flaws can be destructive even without malicious intent, as exemplified by the crypto credit crisis of 2022. The problem wasn’t fraud; it was the absence of stakeholder oversight. Key infrastructure was controlled by a handful of opaque actors, accountable to no one but themselves. What looked like decentralized finance turned out to be shadow banking with a Web3 skin.

Such incidents hollow out community confidence and cast doubt on the very ideals blockchain set out to deliver.

Bringing back trust in crypto

Even with the right intentions, building in crypto is fraught with risk. Tokenization presents a legal tightrope. Even with regulatory progress in the US, compliance is costly — starting in the six figures — which restricts innovating in crypto to rich individuals and venture-backed startups.

The SEC, for instance, has been keeping a sharp eye on the crypto world, and they’re quick to label tokens as unregistered securities if the governance structure lacks decentralized elements. Add to that the risk of triggering financial services laws, AML and KYC obligations, fraud liability and unpredictable tax exposure — and launching a token starts to look more like a legal hazard than a viable venture. One misstep can mean lawsuits, asset freezes or criminal charges.

This regulatory uncertainty often pushes projects to adopt complex, costly offshore legal structures that can cost hundreds of thousands of dollars, or to launch memecoins as the only seemingly safe, but fundamentally limited option. Grassroots innovation in crypto is crippled by the inaccessibility of tokenization, slowing the path to adoption.

A legal launchpad for tokenized startups

Decent is an end-to-end onchain operations platform that offers an alternative. The project started out as a smart contract development agency back in 2017. But after seeing the downfall of the crypto space during the credit crisis, it evolved into a full-stack legal automation and operations platform that supports the entire lifecycle of tokenized companies and makes building crypto companies safe again.

Decent is best described as a compliant token launchpad, complete with everything founders need to safely launch and scale tokenized companies.

From early-stage structuring to long-term maintenance, Decent offers a streamlined environment to set up token entities, issue and manage tokens, handle contributor payouts and stay compliant across jurisdictions. It’s designed to strip away the technical and legal bottlenecks that can stall a promising project.

The platform automates the creation and execution of legally binding agreements during issuance, including KYC and AML attestations and token purchase agreements. To help projects stay compliant, Decent produces auto-generated reports based on onchain and offchain activity, with filing support for US regulatory frameworks. These tools also make dispute resolution and legal audits easier, as attorneys can access structured and exportable records on demand.

Investor protection meets founder empowerment

The Decent Contract for Network Tokens (DCNT) is a key innovation by the platform. Currently, the cryptocurrency industry primarily uses a combination of SAFEs and token warrants when raising funds to launch tokens, with one covering equity while the other covers token rights.

However, SAFEs were designed for Web2 equity rounds and often fail to reflect the way value accrues in tokenized ecosystems. Meanwhile, token warrants often introduce legal ambiguity and enforcement challenges. And combined, this creates competing equity structures that harm investors.

The DCNT is a modified investment agreement that replaces this dual-document setup with a single agreement built specifically for Web3. It references a suite of smart contracts that work together to protect investors and hold project teams accountable, making participation safer for both sides.

The future of crypto lies in tokenizing startups

Whether to airdrop tokens, manage lockups or respond to legal demands, Decent delivers a robust infrastructure that helps projects operate transparently and stay legally prepared from day one. By offering a single platform for token issuance, compliance, reporting and governance, it reduces friction for builders and gives investors greater confidence in the integrity of the projects they support.

The aim is to make launching and investing in tokens safer, not just for crypto-native teams, but for any startup looking to fundraise, build community and plan responsible exits through tokenization. By restoring trust in the space, Decent opens the door to a future where tokenized models are accessible across the broader startup economy.

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• #Blockchain
• #Cryptocurrencies
• #Decentralization
• #DAO
• #Scams
• #Web3
• #Tokenization