Crypto Capital Shifts From Tokens to Stocks as Launches Struggle: DWF

Market maker DWF Labs reports that investor capital is increasingly rotating from new token launches into publicly listed crypto companies because over 80% of new tokens fall below their Token Generation Event (TGE) price shortly after listing, often dropping 50% to 70% within 90 days. This trend is seen as a capital rotation, not an exit from crypto, evidenced by a surge in crypto-related IPOs (reaching $14.6 billion in 2025) and M&A activity ($42.5 billion). DWF attributes this shift to accessibility; institutional investors prefer regulated securities markets, where public shares can be included in indexes and ETFs, offering clearer valuation multiples compared to tokens. Experts confirm that investors seek "cleaner ownership" and enforceable rights, favoring the "equity wrapper" of listed companies which align better with real-world adoption, compliance, and institutional portfolio rules.

(Source：Cointelegraph)