Monad Premarket Perps Plunge 20% Before Mainnet Launch - What’s Next?

Monad's pre-market perpetual contracts take a brutal 20% haircut just as the network prepares for its mainnet debut.

The Pre-Launch Jitters

Traders are dumping positions ahead of the mainnet switch-on—classic crypto volatility striking at the worst possible moment. That 20% drop represents real money evaporating from leveraged positions, leaving some wondering if the launch will be a breakout or breakdown event.

Market Mechanics Under Microscope

Perpetual contracts are getting crushed while the underlying asset remains in pre-trading limbo. The disconnect between derivatives and spot markets creates perfect conditions for either a massive squeeze or continued liquidation cascades—depending on which way the wind blows post-launch.

Timing Is Everything, Until It Isn't

Mainnet launches typically trigger either explosive rallies or spectacular implosions. With pre-market sentiment turning sour, Monad faces an uphill battle to convince markets this is just temporary noise rather than a fundamental red flag. Because nothing says 'healthy project' like a 20% derivatives crash before the product even launches—just ask any Wall Street veteran about proper price discovery in unregulated markets.

Now the entire crypto community watches to see whether this dip becomes a buying opportunity or the start of something much uglier.

When all is put together, the market seems cautious but generally positive. For example, buying a “Yes” bet that Monad exceeds $2 billion cost about 86 cents, while a “No” bet cost 15 cents, showing strong agreement on a moderate valuation.

High stakes in the final ICO stretch

Monad’s ICO on Coinbase has already raised $159.56 million, reaching 85% of the $187.5 million target with two days remaining, as noted by Zoomer—a leading source for DeFi markets news—in a latest X post. Investors participate using USDC at a fixed $0.025 per token. Coinbase employs a small-buyers-first algorithm, allowing wider access. Contributions range from 100 to 100,000 USDC, with refunds for unused amounts. 

The sale is Coinbase’s first-ever public token offering, making it a notable event in the U.S. crypto scene. Traders are paying close attention to the token’s price, how many tokens exist, and how they are being distributed as the launch gets closer.

On the other hand, Hyperliquid began premarket trading with MON-USD perpetual contracts a month ago, letting traders open positions with up to 3x leverage. This derivative operates independently of spot prices, offering a unique pre-launch trading avenue.

Monad is a high-throughput blockchain, ideal for applications in need of speed. The platform makes use of technologies such as MonadDB for the handling and execution of parallel tasks efficiently. It is compatible with Ethereum-based applications and designed for global use. 

The focus is on decentralization, therefore. So far, in the last two years, the Monad team has been running developer support programs and getting the ecosystem ready for its upcoming launch.

Analysts value monad as being competitive compared with other major LAYER 1 launches. Matthew Nay said, “The $2.5 billion ICO FDV is set below the $3 billion valuation from Monad’s last private funding round and below the $3.8 billion FDV on Hyperliquid.” Such positioning may attract early adopters, particularly given recent market weakness.

Currently, 72.4% of the total $187.5M available has been requested for the @monad ICO on Coinbase.

We took a historical look at where Monad's ICO valuation compares to other major L1 launches. MON's initial FDV is similar to SOL's when compared to BTC at its time of launch, and… pic.twitter.com/BOgZ0BHAFE

Tokenomics and community concerns

Even with rising interest, some investors remain cautious about how Monad’s tokens are distributed. Critics say the project isn’t fully clear about its total supply. One user on X, Gautamguptagg, pointed out, “Monad claims Total Supply = 100B, but the real figure including validator rewards = 108.2B.”

🚨 Exposing $MON @monad Tokenomics :

99% Folks Didn't Know This…

1️⃣

Monad claims Total Supply = 100B,
but the real figure including validator rewards = 108.2B.

They mentioned validator rewards only at the bottom of the article, not in the total supply section – which makes… pic.twitter.com/aBR6VC5kAK

Some people are worried that funds meant for the ecosystem are being used for the project’s operational costs instead of supporting developers. KookCapitalLLC noted, “monad tokenomics look unnghhh horrible > only 3.3% for the airdrop > team has 27% vs investors 19.7% > only 38.5% for ecosystem development.” Critics say this token distribution could make it harder for the community to get involved or benefit from the project.

While Monad’s launch is drawing attention, there are risks. Premarket trading fell 20%, showing caution, while the ICO has seen solid participation. Investors should carefully consider the token distribution, valuation, and current market conditions before taking part. The outcome of the launch could affect Monad’s credibility and how it is used in the future.

Also Read: Coinbase Adds ETH-Backed Loans as Volatility Rises