80% of newly issued tokens are trading below their initial price as institutional capital moves away from…

A recent shift in the capital market has seen over 80% of newly issued tokens falling below their initial offering price within 90 days of listing, prompting a movement of institutional capital from tokens to crypto equities. This transition from tokens to equities is being primarily driven by institutional compliance requirements and a shift in valuation paradigms.

Data from market maker DWF Labs has revealed a structural transformation that is rapidly unfolding within the cryptocurrency space. More than 80% of new tokens are experiencing a price decline below their token generation event (TGE) price within 90 days of listing. This trend indicates that buyers in the public market are often faced with immediate losses following the listing of tokens.

Andrei Grachev, a managing partner at DWF Labs, emphasized that these statistics reflect an ongoing post-listing pattern rather than short-term market fluctuations. He explained that most tokens tend to reach their price peak within the first month of listing, after which prices steadily decline due to accumulating selling pressure.

Furthermore, the surge in cryptocurrency-related IPOs and mergers and acquisitions serves as a stark contrast to the struggling token issuance market. In 2025, cryptocurrency-related IPO funding reached approximately $14.6 billion, representing a significant increase from the previous year. M&A activity in the industry surpassed $42.5 billion, reaching a five-year high. Grachev underscored that this shift should be viewed as a rotation of capital rather than an exodus.

Comparing the valuations of listed companies like Circle, Gemini, eToro, Bullish, and Figure to tokenized projects over the past 12 months, DWF highlighted a valuation disparity driven by accessibility. While listed equities trade at multiples ranging from 7 to 40 times sales, tokenized projects only trade at multiples of 2 to 16 times. This valuation gap is attributed to regulatory constraints that limit many institutional investors, such as pension funds and endowments, to invest solely in regulated securities markets.

Maksym Sakharov, Co-founder and Group CEO of WeFi, corroborated the observed capital rotation from token issuance to equity. He noted that investors, when risk aversion tightens, seek clearer ownership, enhanced disclosure, and executable pathways for rights. Capital is flowing towards infrastructure-like businesses such as custody, payment, clearing, brokerage, compliance, and underlying pipelines, illustrating the attractiveness of equity packaging due to its alignment with real-world applications supporting licensing, auditing, partnerships, and distribution channels.

Sakharov further explained why investors prefer crypto equities over tokens, highlighting the distinction between tokens and businesses. Tokens alone cannot replace distribution channels or tangible products. Projects that fail to sustain user growth, fee income, trading volume, and retention rates often rely on speculative support for token prices, leading to disappointment after initial success. While listing crypto equities may not necessarily be safer, they offer investors greater clarity and ease of evaluation compared to holding tokens, which may require custody approvals and policy adjustments.

In conclusion, Grachev categorized this shift as a structural rather than cyclical development. He affirmed that while tokens will continue to exist as incentives and governance tools within the crypto ecosystem, institutional capital is increasingly gravitating towards the equity track. This paradigm shift highlights the burgeoning success of legitimate protocols with real revenue streams, while speculative token issuance projects face a more stringent environment.