PANews February 17 News, crypto KOL Edgy posted on X platform that 85% of tokens issued in 2025 are in a loss state. Many projects supported by venture capital firms only break even, and some are even in serious loss.
Galaxy Research charts show that in the second quarter of 2022, crypto venture capital firms raised nearly $17 billion through over 80 new funds in a single quarter; now, the investment return rate of venture capital firms has been declining continuously since 2022, with the number of new funds reaching a five-year low. The fundraising amount in the last quarter was only 12% of that in the second quarter of 2022.
Additionally, the $8.5 billion invested by venture capital firms in the last quarter was not new capital but leftover funds raised in 2022. The total capital deployed from 2023 to 2025 roughly equals the fundraising amount of 2022. The model of raising funds, issuing tokens, and selling to retail investors is coming to an end.
Edgy believes that as the influence of venture capital firms weakens and VC influence recedes, projects that truly succeed will be those with real users and real revenue. At that time, more fair issuance methods and fewer insider sell-offs will emerge.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
BlackRock CEO: Asset Tokenization Could Make Mobile Investing as Easy as Making Payments
BlackRock CEO Larry Fink pointed out in his annual letter that asset tokenization technology can simplify the investment process, enabling users to easily invest through digital wallets. He believes this will enhance financial efficiency, lower investment barriers, and promote market participation. Traditional financial institutions and regulatory bodies are actively exploring applications of tokenization.
GateNews1h ago
DeFi Exploits Surge in 2026 As Market Loses $137M in 3 Months
In the first three months of 2026, DeFi platforms have suffered over $137M in losses from exploits, with Step Finance facing the most significant loss of $27.3M due to a private key compromise. Other notable losses were reported by Truebit, Resolv, and SwapNet.
BlockChainReporter3h ago
OnlyFans Founder Leonid Radvinsky Dies of Cancer at 43
Gate News report: On March 23, Bloomberg reported that Leonid Radvinsky, founder of OnlyFans, passed away from cancer at the age of 43. According to financial disclosure information from OnlyFans' parent company, the company had previously invested part of its operating funds in ETH, with a purchase cost of $19.889 million.
GateNews11h ago
Visa Doubles Down on Crypto Strategy, Launches Large-Scale Engineering Recruitment to Shape Digital Assets Future
Visa is hiring cryptocurrency engineers, signaling its crypto strategy entering a new phase. The company aims to deepen its control over digital payments and blockchain, driving integration with the crypto ecosystem. Despite facing regulatory and security challenges, Visa is enhancing its technical capabilities to unlock the application potential of cryptocurrencies.
GateNews16h ago
Global instability drives the adoption of decentralized messaging and social media applications
Growing unrest and communication disruptions in the Middle East, Asia, and Africa have increased interest in decentralized messaging and social media apps, with a 145% rise in searches. Users prefer open protocols for privacy, despite continued use of centralized platforms.
TapChiBitcoin16h ago
Meta's Metaverse failure, Solana's president dismisses GameFi—are blockchain games really gone for good?
Solana Foundation President Lily Liu stated that blockchain gaming is difficult to recover and bluntly said it "won't come back," reflecting shaken market confidence. Despite once attracting massive investment, the gaming model lacks sustainability and content, causing the market to shrink to $1.212 billion. Developers are shifting focus to emphasize gaming essence, viewing blockchain as an auxiliary technology rather than a core selling point.
CryptoCity18h ago
