Investor Capital Shifts from Tokens to Stock

Recent research by DWF Labs indicates that over 80% of token launches in 2025 are trading below their initial listing prices, while investment in traditional public markets related to crypto is increasing.

According to DWF’s analysis of Memento Research data, many projects are seeing significant declines, often between 50% and 70%, shortly after their token generation events. “Public buyers frequently experience losses soon after launches,” noted Andrei Grachev, a managing partner at DWF.

“The TGE price indicates the exchange-listed price established before launch, allowing for an understanding of price volatility afterward,” Grachev explained.

DWF emphasized that this trend reflects a long-term pattern rather than temporary market fluctuations. Capital is moving to established public companies rather than risky new token launches.

Surge in IPOs and M&A in Crypto

While token investments struggle, fundraising for initial public offerings (IPOs) in the crypto sector reached approximately $14.6 billion in 2025, a substantial rise from the year before. M&A activities peaked at the highest rate in five years, exceeding $42.5 billion.

Grachev remarked, “This represents a rotation of capital, not a withdrawal. We’re witnessing an extensive gap in valuations between public equities and tokenized projects.”

Maksym Sakharov from WeFi echoed this sentiment, stating, “Investors now prefer ownership that offers clearer disclosures and enforceable rights.”

Conclusion

Grachev suggests this evolution indicates a shift in the market’s structure, where serious projects with solid revenue potential will succeed, while speculative launches may struggle with increasing scrutiny. “Tokens will remain part of networks, but institutional investors now favor equity avenues to engage with the crypto space,” he concluded.