The vast majority of token sales conducted in 2025 have 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 launch price. Many venture capital deals are barely breaking even or are significantly in the red, the expert noted.

The previous success formula—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 willing to fund any project that mentioned cryptocurrency.

Now, the landscape has changed:

  • Venture investment returns have been declining since 2022;
  • The number of new funds has hit a five-year low;
  • The amount of capital raised in the last quarter was only 12% of the figures from the second quarter of 2022.

From October to November 2025, ventures invested $8.5 billion—an 84% increase compared to the previous quarter. However, Edgy does not consider this to be "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 just 2022. The usual scheme of 'raise a round, launch a token, and dump it on retail investors' is becoming a thing of the past," he added.

On a positive note, the expert observed that as the influence of venture capital wanes, projects with real users and actual revenue are coming to the forefront. This suggests fairer token launches, fewer insider dumps, and new blockchains.

Similar conclusions were shared earlier by Memento Research. Analysts examined 118 TGEs that took place in 2025, finding that 84.7% were in the red. Nearly 40% of coins plummeted by 70-90%.

Source: Memento Research.

As a reminder, CoinGecko recorded a historic "mortality" rate for tokens in 2025, with over 11.6 million coins failing throughout the year.