The post Why Big Crypto Raises Often Trigger Price Crashes appeared on BitcoinEthereumNews.com.

This is why massive crypto fundraising rounds often lead to token price crashes, and why high launch valuation isn’t a guarantee of success. Historically speaking, in the crypto space, massive fundraising rounds where investors raise hundreds of millions are often treated as a victory. When a project announces that it has secured 100 million, 500 million or even a billion in capital, the retail market usually reacts violently.  Most people think that if smart money is pouring in, the token must be destined for success. However, historical data tells a much darker story. The Illusion of a Big Crypto Fundraising Round Fundraising has always been the main way people judge a project. We see a headline about a project raising $500 million, and our brains compare that capital with guaranteed profit.  However, in the crypto space, capital is a double-edged sword. While having a large treasury provides the money to build properly, it also creates a massive valuation problem.  This is because when a project raises a multi-billion-dollar valuation with in-house investors, the public market has very little room left for growth.  By the time the token hits the average retailer’s wallet, the price pump has often already happened. Token Performance After Huge Raises To understand the relationship between fundraising and performance, let’s look at the numbers. These are some of the biggest fundraisers in history, and the results are flashing a majorwarning for any investor. The FTT token raised $1.75 billion and is down by around 97%. Celsius’ token ($CEL) raised $908 million and is currently down 99%. Crypto exchange FTX has raised $900 million at a $18 billion valuation. Congrats to @SBF_Alameda and team pic.twitter.com/cg3JzpDpwr — Anthony Pompliano 🌪 (@APompliano) July 20, 2021 And finally, the flow token raised $747 million and is down by 97% The only…

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Filed under: News - @ January 22, 2026 4:29 pm