Tokens Flee, Stocks Roar: Crypto’s New Love-Hate Story

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Key Takeaways

  • More than eighty percent of 2025 token launches slam into a selling point below their TGE price, some plummeting 50‑70 %.
  • Even the glamourous exchanges like Binance and Bybit ascribe their fortunes to fresh listings.
  • High FDVs and premature sell‑offs have fatally wounded the token launch vocation.
  • Capital now swerves toward public crypto stocks, igniting a $14.6 billion IPO wildfire.

Data unmasked by DWF Labs and Memento Research reveal that more than eighty percent of tokens introduced last year now trade miserably below their token generation event (TGE) price. Many nosedived 50‑70 % within the first ninety days, a spectacle analysts release as a “structural rot” away from the glamorous new‑token gaieties toward the sober realm of regulated crypto equities.

Consequently, the world of crypto‑related IPOs has been set alight, with fundraising bleeding $14.6 billion as investors scurry for alternatives to the wobbling token model.

Token Launches Face Widespread Losses

Research tracking one hundred eighteen token generation events in 2025 confirmed that eighty‑four point seven percent are presently below their launch price. Median drawdowns are a disgrace, especially on major exchanges where fresh listings fell a staggering 71 % in fully diluted valuation and 67 % in market capitalisation shortly after hitting the live stream.

On Binance, several high‑profile venture‑backed projects of 2024 suffered steep descents, some nearly four‑fifths of their early valuations evaporating.

Bybit and KuCoin reported median returns of -70.4 % and -66.1 % on 2024 listings.

OKX lobbied harder; still, only 27.6 % of its listings survived into the third quarter of 2024.

The verdict: the classic token launch structure is bruising up under its own weight.

Why Investors Are Moving to Crypto Stocks

Analysts describe this capital migration as a “flight to quality.” Publicly traded crypto firms such as Circle, Gemini and eToro now trade at price‑to‑sales multiples from seven to forty times. Comparable tokenised projects, by contrast, typically swing between two and sixteen times.

Institutional investors find their purchase options shackled by unregistered token trades. Regulated securities such as crypto IPOs and ETFs present clearer compliance, audited accounts and defined shareholder rights.

Capital migrates even further toward infrastructure: custody, compliance and payment providers. Unlike tokens, equities bestow legal licensing and corporate transparency that color‑blind funds demand.

The TGE Is Losing Its Power

Industry chatter now says the token‑first funding model has become sacrilegiously ineffective.

Over‑inflated fully diluted valuations coupled with meagre circulating supply at launch have turned the market into a pressure cooker. Retail buyers get in at inflated prices, while early venture investors and airdrop recipients off‑load into early liquidity.

The rise of “mercenary capital” in 2025 only worsened the situation. Airdrop participants often had no lasting interest, inflating engagement metrics before throwing their money into a tattered net.

Tokens may flare for a month and then vanish; crypto equities demonstrate steadier growth over longer horizons.

As 2026 progresses, data indicates investors are reassessing risk, valuation and regulation, reshaping capital’s entry into the digital‑asset sector.

The information presented here is for educational purpose only and does not constitute financial, investment or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Please do your own research and consult a licensed financial advisor before making any investment decisions.

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2026-02-23 12:27