Weak business models and inflated valuations are contributing to the crypto industry’s shakeout, according to Ryan Kirkley, CEO of Global Settlement Network.
By Will Canny, AI Boost|Edited by Cheyenne Ligon37 min ago3 min readMake preferred on ShareShare this articleCopy linkX (Twitter)LinkedInFacebookEmailMake preferred on The end of easy money in crypto leads to project failures. (Unsplash)SummaryShow- According to Kirkley, the recent wave of crypto project failures is revealing those that secured excessive funding at unrealistic valuations without establishing sustainable revenue.
- Token-based governance and fundraising incentives have exacerbated the situation by making it challenging for projects to adapt and rewarding overly optimistic narratives.
- This downturn coincides with bitcoin nearing a crucial support level, though Kirkley believes that governments are increasingly adopting blockchain technology, albeit not in the decentralized manner originally envisioned by the crypto community.
The surge in crypto project closures is not surprising but rather a delayed response to the funding strategies employed during the industry’s boom years, as stated by Ryan Kirkley, CEO of Global Settlement Network.
Data from RootData, highlighted by CoinDesk, indicates that over 100 cryptocurrency projects have either shut down, filed for bankruptcy, or disappeared entirely in 2026. This trend is attributed to declining altcoin prices, drained token reserves, and limited venture funding, which have exposed the vulnerabilities of businesses lacking sustainable economic models.
Kirkley suggests that many of these failures were essentially predetermined during the fundraising frenzy of 2020-21.
According to Galaxy Research, venture capitalists invested around $4 billion in 355 crypto and blockchain deals during the first quarter of 2026. This amount is approximately half of what was invested in the last quarter of 2025, despite only a 16% decrease in the number of deals, suggesting that the decline is primarily due to fewer large funding rounds.
Global Settlement Network (GSN) focuses on developing blockchain infrastructure for banks, governments, and regulated financial institutions. Its technology aims to facilitate the issuance of digital currencies, including stablecoins and central bank digital currencies, as well as the settlement of tokenized assets and cross-border payments, all while ensuring compliance and interoperability.
Excessive Funding, Insufficient Revenue
Kirkley commented to CoinDesk, “Raising funds at inflated valuations almost guarantees a negative outcome.”
He pointed out that many projects secured large funding rounds despite having minimal revenue and no viable path to profitability, leaving them reliant on achieving multibillion-dollar valuations to justify future financing.
The fundraising culture in crypto has further complicated the landscape.
Unlike in other sectors, announcing a significant funding round can elevate a project's token value and attract retail investor interest, creating incentives to showcase financing in an overly positive manner.
This headline figure can mask the actual strength of the financing. Kirkley noted that GSN faced instances where investors failed to fulfill their funding commitments, highlighting discrepancies between announced funding rounds and the actual cash received.
The Reality of Token Governance
Decentralized governance is another model currently under scrutiny.
Kirkley noted that token ownership does not always equate to active engagement, and governance votes could hinder struggling protocols from making necessary adjustments. “Token holders do not necessarily represent active participants in your ecosystem,” he stated.
As a result, the market is increasingly determining the actual needs of the crypto space.
Kirkley identifies stablecoins, neobanks, and institutional-grade wallet and settlement infrastructure as potential winners, while sectors such as social tokens, memecoins, and certain aspects of Web3 gaming face tougher challenges ahead.
Bitcoin at a Crucial Support Test
The ongoing shakeout may worsen if bitcoin BTC$64,100.72 breaches its next key support level.
Kirkley described the current market as a “soft bear market,” with support at $61,200 deemed essential. A failure to hold this level could lead to forced liquidations among leveraged traders, possibly paving the way to a drop towards $41,000.
At the time of publication, bitcoin was priced around $64,100.
Adoption with Limitations
Despite the market's challenges, Kirkley perceives a long-awaited trend: adoption.
In recent weeks, he reported meetings with representatives from seven governments exploring blockchain technology. Global Settlement Network itself advocates for regulated infrastructure for digital currencies, tokenized assets, and cross-border settlements.
The catch, however, is that this adoption diverges significantly from the original vision of crypto.
Kirkley noted that while governments and institutions recognize blockchain's potential to reduce costs and modernize the financial system, they are not necessarily inclined to implement it through decentralized frameworks.
Thus, while crypto may be on the brink of widespread adoption, it appears that the decentralized financial future initially sought may not be the direction the market ultimately pursues.