The vast majority of token sales conducted in 2025 resulted in losses for investors, according to DeFi researcher Edgy.
85% of token launches in 2025 are underwater.
VC backed deals barely break even and some are deep in the red.
Back in the day having a “Top VC” on the cap table was a huge catalyst, but not anymore. This chart from Galaxy Research tells the story.
In Q2 2022, crypto VCs… pic.twitter.com/HAdlXAYccA
— Edgy — The DeFi Edge 🗡️ (@thedefiedge) February 17, 2026
Nearly 85% of tokens are currently trading below their initial price. Many venture-backed deals are barely breaking even or are significantly in the red, noted the expert.
The previous formula for success—having a major venture investor—has ceased to be effective. In the second quarter of 2022, crypto startups raised nearly $17 billion with the emergence of over 80 new funds. At that time, investors were eager to fund any project mentioning cryptocurrencies.
The situation has since changed:
- the returns on venture investments have been declining since 2022;
- the number of new funds has reached a five-year low;
- the amount of funds raised last quarter was only 12% of the figures from the second quarter of 2022.
From October to November 2025, ventures invested $8.5 billion—a figure that rose by 84% compared to the previous quarter. However, Edgy does not consider this “fresh” capital. According to him, market participants are investing “old” funds.
“The total investment volume from 2023 to 2025 is roughly equal to the amount raised in 2022 alone. The usual scheme of ‘raising a round, launching a token, and offloading it to retail investors’ is becoming a thing of the past,” he added.
Nonetheless, the expert sees a positive side: as the influence of venture capital wanes, projects with real users and genuine revenue are taking precedence. This signifies fairer token launches, fewer insider dumps, and new blockchains.
Earlier, similar conclusions were shared by Memento Research. Specialists analyzed 118 TGE events that took place in 2025. Of these, 84.7% were “in the red.” Nearly 40% of coins plummeted by 70-90%.
Source: Memento Research. As reported by CoinGecko, a record “death rate” of tokens was recorded in 2025. Over the year, more than 11.6 million coins failed.