Author: Amin Haqshanas

Translation: Deep Tide TechFlow

Deep Tide Introduction: Data from market maker DWF Labs reveals a structural change that is accelerating: over 80% of new tokens fall below their issuing price within 90 days of listing, while the scale of IPOs and mergers in the crypto industry both hit record highs. This is not a withdrawal of funds but a migration of capital from tokens to equity, driven by the dual needs of institutional compliance and the practical valuation system.

The full text is as follows:

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

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

DWF Labs' executive partner Andrei Grachev told CoinTelegraph that this data reflects a persistent post-listing trend rather than short-term market fluctuations. He noted that most tokens reach their peak price within the first month after listing, followed by a continued decline as selling pressure accumulates.

"The TGE price is the exchange listing price set before listing," Grachev said, "This is the price at which the token opens on the exchange, so we can see how much the price actually changed in the first few days due to volatility."

Source:DWF Ventures

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

Surge in Crypto IPOs and Mergers, Capital Shifts from Tokens

In contrast, traditional market financing activities associated with the industry have clearly intensified. Crypto-related IPO financing reached approximately $14.6 billion in 2025, a significant increase from the previous year; the scale of merger and acquisition activity exceeded $42.5 billion, setting a five-year high.

Grachev noted that this shift should be understood as a rotation of capital rather than a withdrawal. He stated, "If capital were just leaving crypto, you wouldn't see IPO financing amounts increase by 48 times year-on-year to $14.6 billion, with merger scales reaching a new five-year high of over $42.5 billion, and crypto equity outperforming token performance."

DWF compared publicly-listed companies such as Circle, Gemini, eToro, Bullish, and Figure to the price-to-sales ratios of tokenized projects over the past 12 months. The trading multiples for listed company equities were around 7 to 40 times sales, while comparable token projects only ranged from 2 to 16 times.

The agency believes the valuation gap stems from accessibility. Many institutional investors, including pension funds and endowed funds, can only invest in regulated securities markets. Listed stocks can also be included in indices and exchange-traded funds, benefiting from automatic buying due to passive investment products.

Maksym Sakharov, co-founder and group CEO of WeFi, also confirmed to CoinTelegraph the rotation of capital from the token issuance side. "When risk appetite tightens, investors do not stop seeking exposure; they start demanding clearer ownership, more precise information disclosure, and pathways to enforceable rights," he said.

Sakharov added that funds are flowing into businesses that appear to resemble infrastructure—custody, payments, clearing, brokerage, compliance, and underlying pipelines. He pointed out that "equity packaging" is attractive because it aligns with real-world applications, facilitating licensing, auditing, partnerships, and distribution channels.

Why Investors Prefer Crypto Equity Over Tokens?

Sakharov stated that the market increasingly views tokens and businesses as two distinct entities. He noted that tokens alone cannot replace distribution channels or available products. If a project cannot continuously accumulate users, fee income, trading volume, and retention rates, token prices can only be supported by expectations rather than actual activity, which is why many issuance projects appear successful at first but later prove to be disappointing.

Sakharov remarked that listed crypto equity may not necessarily be safer, but it is clearer and easier for investors to assess. Public companies have reporting standards, governance mechanisms, and legal claims that comply with institutional portfolio rules; whereas holding tokens often requires custody approval and policy adjustments.

Grachev characterized this shift as structural rather than cyclical. He stated that tokens will continue to exist as incentive and governance tools within crypto networks, but institutional capital is increasingly leaning towards equity avenues.

"Tokens will not disappear, but we are witnessing a permanent bifurcation: reputable protocols with real income will thrive, while the tail market of speculative issuance will face harsher environments," he concluded.