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
Ethereum Foundation Launches "Hardness" New Direction: Censorship Resistance, Privacy, and Post-Quantum Security All at Once
The Ethereum Foundation emphasized "Harden the L1" as a core priority in its 2026 update, ensuring censorship resistance, privacy, and security are maintained while scaling. Led by three members, it covers technical improvements and user protection work, emphasizing the continuity and resilience of core attributes to meet user needs.
動區BlockTempo1h ago
Crypto Market Records Downturn As Fear Again Dominates Investor Sentiment
The crypto market has declined, with a total capitalization of $2.42T and a 24-hour volume drop of 6.08%. Bitcoin and Ethereum saw minor decreases, while notable gainers included $BPX and $PENGU. DeFi TVL fell by 1.56%, and NFT sales dropped 14.62%. Morgan Stanley updated its Bitcoin ETF filing, while Gemini faces a lawsuit for misleading investors.
BlockChainReporter1h ago
Elon Musk: X platform will release a major AI algorithm update and open source it next week
Gate News reports that on March 20, Musk stated that the X platform will release a major artificial intelligence algorithm update next week and plans to open-source it simultaneously.
GateNews2h ago
Block Company Rehires Some Employees After AI Layoffs, Highlighting Indispensability of Human Roles
Block Inc. has recently rehired some employees after introducing AI tools and laying off 4,000 workers, indicating that AI cannot completely replace human work. This phenomenon has also appeared at companies like Klarna, reflecting the complexity of AI integration and the value of human contribution.
GateNews2h ago
World Gold Council Launches "Gold as a Service" to Promote the Upgrade of Digital Gold Infrastructure
The World Gold Council plans to launch a "Gold-as-a-Service" platform aimed at simplifying the launch process for digital gold products, connecting physical gold custody with digital management, enhancing market liquidity, and promoting the integration and development of gold in the digital finance era.
GateNews3h ago
Nous Research CEO Announces AI Agent Independently Completes 79,000-Character Novel Writing
Nous Research CEO Jeffrey Quesnelle announced that AI system Hermes Agent completed the creation and typesetting of the novel "The Second Son of the House of Bells," which contains 19 chapters and 79,456 words, demonstrating the potential of AI storytelling. The process was divided into four stages, forming the final work through adversarial editing and simulated peer review, drawing on the iterative methodology of Autoresearch.
GateNews3h ago
