80% of new tokens have fallen below the issuance price, and institutional capital is shifting from tokens to crypto equity.

This is a capital shift from tokens to equity, driven by institutional compliance requirements and the real-world valuation system.

Author: Amin Haqshanas

Translation: Deep潮 TechFlow

Deep潮 Guide: Data from market maker DWF Labs reveals an accelerating structural shift: over 80% of new tokens have fallen below their issuance price within 90 days of listing, while the scale of crypto industry IPOs and mergers and acquisitions has hit record highs. This is not a capital withdrawal, but a migration from tokens to equity, driven by institutional compliance needs and the practical valuation framework.

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According to research and commentary from market maker DWF Labs, as new token issuance remains sluggish, investor funds are increasingly shifting from tokens to crypto-listed companies.

DWF Labs cites data from Memento Research, covering hundreds of token issuance projects on major centralized and decentralized exchanges. The firm states that over 80% of these projects have fallen below their token generation event (TGE) price, with typical declines of 50% to 70% within about 90 days of listing, indicating that public market buyers often face immediate losses after listing.

Andrei Grachev, Managing Partner at DWF Labs, told CoinTelegraph that this data reflects a persistent post-listing pattern rather than short-term market volatility. He said most tokens reach their peak price within the first month after listing, then continue to decline as selling pressure accumulates.

“TGE price is the exchange listing price set before trading begins,” Grachev explained. “It’s the price at which the token opens on the exchange, so we can see how much the price actually fluctuated in the first few days.”

Source: DWF Ventures

This analysis focuses on structured issuance projects backed by products or protocols, rather than meme coins. Airdrops and early investor unlocks are identified as primary sources of selling pressure.

Crypto IPOs and M&A Boom, Capital Moving from Tokens to Equity

In contrast, traditional market financing activities linked to the industry have significantly increased. Crypto-related IPO funding is projected to reach approximately $14.6 billion in 2025, a substantial rise from the previous year; M&A activity has exceeded $42.5 billion, reaching a five-year high.

Grachev notes that this shift should be understood as capital rotation rather than withdrawal. He said, “If capital was just leaving crypto, you wouldn’t see IPO funding increase 48-fold to $14.6 billion, nor M&A scale surpass $42.5 billion, a five-year high, nor crypto equity outperform tokens.”

DWF’s report compares the past 12 months’ price-to-sales ratios of publicly listed companies like Circle, Gemini, eToro, Bullish, and Figure with tokenized projects. The trading multiples for listed company equities range from about 7 to 40 times sales, while comparable token projects are only 2 to 16 times.

The firm believes the valuation gap stems from accessibility. Many institutional investors, including pension funds and endowments, can only invest in regulated securities markets. Listed stocks can also be included in indices and ETFs, providing automatic buy-in from passive investment products.

Maksym Sakharov, co-founder and CEO of WeFi, also confirmed to CoinTelegraph that there is capital rotation from token issuance. “When risk appetite tightens, investors don’t stop seeking exposure; they start demanding clearer ownership, more transparent disclosures, and enforceable rights,” he said.

Sakharov added that funds are flowing into infrastructure-like businesses—custody, payments, clearing, brokerage, compliance, and underlying pipelines. He pointed out that “equity packaging” is attractive because it aligns with real-world applications, supporting licensing, audits, partnerships, and distribution channels.

Why Do Investors Prefer Crypto Equity Over Tokens?

Sakharov explained that the market increasingly views tokens and businesses as two separate things. He noted that tokens alone cannot replace distribution channels or usable products. If a project cannot continuously grow its user base, fee income, trading volume, and retention, its token price can only be supported by expectations rather than actual activity. This explains why many projects initially appear successful but later disappoint.

Sakharov said that listed crypto equities may not necessarily be safer, but they are clearer and easier to evaluate for investors. Listed companies have reporting standards, governance mechanisms, and legal claims, aligning with institutional portfolio rules; holding tokens often requires custody approval and policy adjustments.

Grachev characterizes this shift as structural rather than cyclical. He said tokens will continue to serve as incentives and governance tools within crypto networks, but institutional capital is increasingly leaning toward equity tracks.

“Tokens will not disappear, but we are witnessing a permanent fork: legitimate protocols with real revenue will thrive, while the long tail of speculative issuance faces a harsher environment,” he concluded.