Crypto capital shifts from tokens to stocks as launches falter

Investor capital is moving from newly launched tokens into publicly listed crypto companies as many token launches struggle. DWF Labs, using Memento Research data on hundreds of launches across major exchanges, found that more than 80% of projects fell below their token generation event (TGE) price, with typical drawdowns of 50% to 70% within roughly 90 days of listing.

DWF managing partner Andrei Grachev said most tokens peak in the first month and then decline as selling pressure builds; he noted the TGE price is the exchange-listed price set before launch. The analysis focused on structured launches tied to projects with products or protocols rather than memecoins, and identified airdrops and early investor unlocks as major sources of selling pressure.

By contrast, capital formation in public markets tied to the sector has strengthened: crypto-related IPO fundraising reached about $14.6 billion in 2025 and M&A activity surpassed $42.5 billion, the highest level in five years.

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