Crypto: Crypto Capital Rotates From Tokens To Stocks As New Launches...

More than 80% of 2025 token launches trade below listing price while IPO funding and M&A in the crypto sector surge, suggesting that investors prefer equity exposure.

Investor capital increasingly flows from tokens into publicly listed crypto companies as new token launches struggle, according to research and commentary from market maker DWF Labs.

Drawing on Memento Research data covering hundreds of token launches across major centralized and decentralized exchanges, the firm said more than 80% of projects have fallen below their token generation event (TGE) price. Typical drawdowns range between 50% and 70% within roughly 90 days of listing, suggesting public buyers often face immediate losses after launch.

DWF Labs managing partner Andrei Grachev told Cointelegraph that the figures reflect a consistent post-listing pattern rather than short-term market volatility. He said most tokens reach a price peak within the first month and then trend downward as selling pressure builds.

“TGE price is the exchange-listed price set before launch,” Grachev said. “This is the price the token is set to open at on the exchange, so we can see how much the price actually changes due to volatility in the first few days,” he added.

The analysis focused on structured launches tied to projects with products or protocols, rather than memecoins. Airdrops and early investor unlocks were identified as major sources of selling pressure.

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In contrast, capital formation has strengthened in traditional markets tied to the sector. Fundraising for crypto-related initial public offerings (IPOs) reached about $14.6 billion in 2025, up sharply from the prior year, while merger and acquisition (M&A) activity surpassed $42.5 billion, the highest level in five years.

Grachev said the shift should be understood as a rotation rather than a withdrawal of capital. If capital were simply leaving crypto, you wouldn't see IPO raises jump 48x year-over-year to $14.6 billion, M&A hit a 5-year high of over $42.5 billion, and crypto equity performance outpacing token performance,” he said.

In its report, DWF compared listed companies such as Circle, Gemini, eToro, Bullish and Figure with tokenized projects using trailing 12-month price-to-sales ratios. Public equities traded at multiples between roughly 7 and 40 times sales, compared with 2 to 16 times for comparable tokens.

Source: CoinTelegraph