Author: Amin Haqshanas
Compiled by: Deep潮 TechFlow
DeepInsight summary: Data from market maker DWF Labs reveals an accelerating structural shift: over 80% of new tokens trade below their issuance price within 90 days of listing, while both crypto industry IPOs and M&A volumes hit all-time highs. This is not a capital flight, but a migration of capital from tokens to equity, driven by institutional compliance demands and a more realistic valuation framework.
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According to research and commentary from market maker DWF Labs, as new token launches remain sluggish, investor capital is increasingly shifting from tokens to crypto public companies.
DWF Labs, citing data from Memento Research, covered hundreds of token launches across major centralized and decentralized exchanges. The firm stated that over 80% of projects have fallen below their token generation event (TGE) prices, with typical declines reaching 50% to 70% within approximately 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 these figures reflect a consistent post-listing pattern rather than short-term market fluctuations. He noted that most tokens reach their price peak within the first month after listing, then continue to decline as selling pressure accumulates.
"The TGE price is the exchange listing price set before launch," Grachev said, "which is the price at which the token opens on the exchange, so we can see how much the actual price fluctuates 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 activity surge as capital shifts from tokens
In contrast, traditional market financing activities tied to the industry have significantly strengthened. Crypto-related IPO funding reached approximately $14.6 billion in 2025, a substantial increase from the previous year; merger and acquisition activity surpassed $42.5 billion, hitting a five-year high.
Grachev said this shift should be understood as capital rotation rather than exit. He said, "If capital were simply leaving crypto, you wouldn't see IPO funding surge 48-fold year-over-year to $14.6 billion, M&A activity hitting a five-year high above $42.5 billion, and crypto equity outperforming token performance."
DWF compared the price-to-sales ratios of publicly traded companies such as Circle, Gemini, eToro, Bullish, and Figure over the past 12 months with those of tokenized projects. Equity valuations of public companies traded at multiples of approximately 7 to 40 times revenue, while comparable token projects traded at only 2 to 16 times.
The institution 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 exchange-traded funds, generating automatic buying pressure from passive investment products.
Maksym Sakharov, Co-Founder and Group CEO of WeFi, also confirmed to CoinTelegraph the presence of capital rotation from token issuance. "When risk appetite tightens, investors don't stop seeking exposure—they begin demanding clearer ownership, more transparent disclosures, and pathways to enforceable rights," he said.
Sakharov added that funds are flowing into businesses that resemble infrastructure—custody, payments, clearing, brokerage, compliance, and underlying pipelines. He noted that "equity packaging" is attractive because it aligns with real-world use cases that support licensing, auditing, partnerships, and distribution channels.
Why do investors prefer crypto equities over tokens?
Sakharov stated that the market is increasingly viewing tokens and businesses as two separate things. He pointed out that tokens alone cannot replace distribution channels or viable products. If a project cannot consistently accumulate users, fee income, trading volume, and retention rates, its token price can only be supported by expectations rather than real activity—this is why many projects appear successful at launch but later disappoint.
Sakharov stated that listing crypto equity may not necessarily be safer, but it is clearer and easier to evaluate for investors. Publicly listed companies have reporting standards, governance mechanisms, and legal claims that align with institutional portfolio rules; whereas holding tokens typically requires custodial approvals and policy adjustments.
Grachev characterized this shift as structural rather than cyclical. He stated that tokens will continue to serve as incentive and governance tools within crypto networks, but institutional capital is increasingly favoring the equity track.
The tokens won't disappear, but we're witnessing a permanent fork: legitimate protocols with real income will thrive, while the long tail of speculative issuances faces a harsher environment," he concluded.