Big Listings, Bigger Dips: Why New Tokens Like PROMPT and KERNEL Are Struggling?

Newly launched Wayfinder (PROMPT) and KernelDAO (KERNEL) tokens have seen double-digit price declines shortly after their initial rise. 

Despite securing listings on prominent platforms, both tokens have experienced sharp corrections. This has raised questions about the sustainability of new launches in an increasingly crowded market.

Why Are New Tokens Like PROMPT and KERNEL Struggling to Maintain Momentum? 

PROMPT is a utility and governance token associated with The Wayfinder Foundation. The protocol utilizes autonomous artificial intelligence (AI agents) to navigate multiple blockchains. This, in turn, facilitates seamless transactions, smart contract execution, and algorithmic trading on-chain.

The Token Generation Event (TGE) for PROMPT was announced on April 10, 2025, via X (formerly Twitter). This enabled users to claim tokens on Ethereum (ETH) and Base. 

“The moment you’ve been waiting for! PROMPT claim is LIVE!” the post read.

At the same time, the token secured major exchange listings from Coinbase, OKX, BitMart, and Gate.io. In addition, Bybit introduced the PROMPTUSDT Perpetual futures contract in its Innovation Zone, enabling users to trade with up to 25x leverage. Binance Alpha also listed the tokens after its launch.

The Innovation Zone and Binance Alpha showcase early-stage cryptocurrency projects with potential for growth. However, such tokens also carry inherent risks, particularly in terms of price volatility.

Notably, PROMPT experienced a dramatic price increase following its launch. The token surged by an impressive 233.3%, reaching an all-time high (ATH) of $0.60 on April 12. 

However, the initial rally, fueled largely by speculative interest, was short-lived. Since then, the token has seen a significant correction, with its value now trading 46.3% below the ATH.

In the past 24 hours alone, PROMPT has fallen by 29.2%. At the time of writing, it was trading at $0.33.

PROMPT Price Performance. Source: CoinGecko

Meanwhile, the restaking protocol KernelDAO’s KERNEL token had an equally turbulent journey. The token’s airdrop started on April 14 at 11:00 AM UTC.

“Leading exchanges including Binance, Bitvavo, Gate, HTX, KuCoin, Kraken, LBank, and MEXC have confirmed the listing of KERNEL with more exchanges to follow,” KernelDAO revealed.

KERNEL surged around 5.0% at launch. Nevertheless, what followed was a continued decline. At the time of writing, the token was trading at $0.32, representing a downtick of 29.8%.

KERNEL Price Performance. Source: CoinGecko

The price drops of PROMPT and KERNEL suggest that the once-reliable strategy of launching tokens through major exchanges and TGEs may no longer guarantee lasting success. As the market becomes more saturated, the initial hype around such launches fades quickly, and many struggle to maintain momentum.

A recent BeInCrypto report corroborates this observation. The report highlighted that 89% of the tokens listed on Binance this year were in red. As the cryptocurrency market matures, investors may need to look beyond the initial buzz and focus on more sustainable factors that contribute to a token’s enduring value.