cryptocurrency projects

Viewpoint: The dilemma of high valuations in cryptocurrency projects may persist until this summer, and new projects will face a decline of over 80% upon launch

ChainCatcher news, crypto blogger AB Kuai.Dong pointed out that the current crypto market is generally facing a liquidity shortage issue, except for Bitcoin. Many projects are forced to issue tokens at high prices due to overvaluation in the last round, in order to avoid early investors' rights protection. It is expected that new projects launched this year may face a decline of over 80%, with a $2 billion initial offering potentially dropping to $300 million, and a $700 million project possibly falling below $100 million. Projects with a market cap below $100 million that have not opened TGE node sales and public offerings face relatively less pressure, and this phenomenon may continue until the summer of 2025.Analysis indicates that not only retail investors but also institutions and node purchasers are adopting short-selling strategies for hedging after new coins are launched. The crypto VC industry may undergo a restructuring from the second half of 2025 to 2026. Influenced by the excessive returns of 2020-2021, a large influx of funds has led to investment managers' salaries rising to over $5,000 per month. As five-year funds are about to expire, some funds may be unable to complete a new round of fundraising due to investment returns falling short of expectations, leading to potential large-scale layoffs and salary cuts in the industry.
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