80% of New Tokens Trade Below Their Issue Price as Institutional Capital Shifts from Tokens to Crypto Equity
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80% of New Tokens Trade Below Their Issue Price as Institutional Capital Shifts from Tokens to Crypto Equity
This is a capital migration from tokens to equity, driven by both institutional compliance requirements and the practical valuation system.
Navigating Web3 tides with focused insightsAuthor: Amin Haqshanas
Translated by: TechFlow
TechFlow Insight: Data from market maker DWF Labs reveals an accelerating structural shift: over 80% of newly launched tokens fall below their issuance price within 90 days of listing, while IPOs and M&A activity in the crypto industry have both hit record highs. This is not capital flight—it is a migration of capital from tokens to equity, driven by institutional compliance requirements and the adoption of realistic valuation frameworks.
Full article below:
According to research and commentary from market maker DWF Labs, investor capital is increasingly shifting from tokens to publicly listed crypto companies, as new token launches continue to languish.
Citing data from Memento Research—which covers hundreds of token launches across major centralized and decentralized exchanges—DWF Labs states that over 80% of projects have fallen below their Token Generation Event (TGE) price, with typical declines ranging from 50% to 70% within approximately 90 days of listing. This indicates that public-market buyers often face immediate losses post-listing.
Andrei Grachev, Executive Partner at DWF Labs, told CoinTelegraph that these figures reflect a persistent post-listing pattern—not short-term market volatility. He noted that most tokens reach their peak price within the first month after listing, then trend downward steadily as selling pressure accumulates.
“The TGE price is the exchange listing price set prior to launch,” Grachev explained. “It’s the price at which the token opens on the exchange, so we can observe how much the price actually fluctuates in the first few days.”
Source:DWF Ventures
This analysis focuses on structured token launches backed by actual products or protocols—not meme coins. Airdrops and early investor unlock events are identified as primary sources of sell-side pressure.
Surge in Crypto IPOs and M&A Signals Capital Shift Away from Tokens
In contrast, traditional-market fundraising tied to the industry has visibly strengthened. Crypto-related IPO proceeds reached approximately $14.6 billion in 2025—a sharp year-on-year increase—while M&A volume surpassed $42.5 billion, marking a five-year high.
Grachev emphasized that this shift should be understood as capital rotation—not withdrawal. “If capital were simply exiting crypto, you wouldn’t see IPO proceeds grow 48-fold year-on-year to $14.6 billion, nor M&A volume hitting a five-year high above $42.5 billion, nor crypto equity outperforming tokens,” he said.
In its report, DWF compared the past 12-month price-to-sales (P/S) multiples of publicly listed firms—including Circle, Gemini, eToro, Bullish, and Figure—with those of tokenized projects. Equity multiples for listed firms ranged between 7x and 40x revenue, while comparable token projects traded at just 2x–16x revenue.
The firm attributes this valuation gap to accessibility. Many institutional investors—including pension funds and endowments—can only invest in regulated securities markets. Listed equities can also be included in indices and exchange-traded funds (ETFs), generating automatic buying demand from passive investment products.
Maksym Sakharov, Co-Founder and Group CEO of WeFi, confirmed to CoinTelegraph the existence of capital rotation away from token launches. “When risk appetite tightens, investors don’t stop seeking exposure—they begin demanding clearer ownership, more transparent disclosures, and enforceable rights,” he said.
Sakharov added that capital is flowing toward businesses resembling infrastructure—custody, payments, clearing, brokerage, compliance, and underlying infrastructure. He noted that “equity packaging” is attractive because it aligns with real-world implementation, supporting license acquisition, audits, partnerships, and distribution channels.
Why Investors Prefer Crypto Equity Over Tokens
Sakharov observed that the market is increasingly treating tokens and businesses as two distinct entities. He pointed out that a token alone cannot substitute for distribution channels or viable products. If a project fails to sustainably grow users, fee revenue, trading volume, and retention rates, its token price relies solely on expectations—not real activity. That explains why many launches appear successful initially but later disappoint.
Sakharov stressed that publicly listed crypto equity isn’t necessarily safer—but it is clearer and easier for investors to evaluate. Public companies adhere to reporting standards, governance mechanisms, and legal recourse frameworks aligned with institutional portfolio rules; holding tokens, by contrast, often requires custodial approvals and internal policy adjustments.
Grachev characterized this shift as structural—not cyclical. While tokens will remain integral to crypto networks as incentives and governance tools, institutional capital is increasingly favoring the equity track.
“Tokens won’t disappear—but we’re witnessing a permanent fork: serious protocols with genuine revenue will thrive, while speculative long-tail launches face a harsher environment,” he concluded.
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