DWF Labs: Over 80% of tokens fell below their offering price within 90 days of listing; capital shifted towards crypto equity and M&A.
PANews reported on February 23 that a recent report from DWF Labs shows that over 80% of tokens fell below their initial offering price (TGE) within 90 days of their launch. This was primarily due to high valuations and declining liquidity weakening investor confidence, compounded by factors such as airdrops and early unlocking sell-offs. In contrast, crypto-related companies have performed strongly through IPOs and M&A activity, with crypto IPO fundraising projected to reach $14.6 billion and total M&A transaction value reaching $42.5 billion by 2025, a five-year high.
The report points out that stocks enjoy a higher price-to-sales premium compared to tokens (7-40x vs. 2-16x), due to factors including institutional access, index inclusion potential, and diversified investment strategies. In 2026, more crypto companies such as Kraken and Consensys plan to go public, marking an accelerated integration of the crypto industry with traditional finance. DWF Labs believes that the future of the digital asset sector will place greater emphasis on fundamentals and sustainable revenue-generating product development, driving the industry towards long-term value creation.
Related reading: Tokens vs. Stocks: The Valuation Gap
You May Also Like
Bitcoin’s Alarming Slide: On Track for Fifth Straight Month of Losses, Nears Historic Losing Streak
Vitalik proposed introducing transaction demo functionality to improve Ethereum's security.
