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The crypto market is showing signs of improvement, with the total market cap recently surpassing $3 trillion. This recovery suggests growing confidence among investors. However, the grim reality is that just as many tokens listed this year have also died due to a lack of sustainable growth methods. Venture Capitalists To The Blame? The Venture Capitalists are essentially killing the crypto space as they opt to fund new and emerging crypto products just for the sake of making profits off of them. While this may not seem immediately harmful, it impacts the industry’s long-term viability. David Phelps of JokerRace explained how VCs operate in crypto: “Normally, VC money comes from the top for a few years while companies work to get it from the bottom long term… but in crypto, that hasn’t happened. Companies have taken money from the top, used it to mint a token at VC-level valuations, then worked to bolster token price—with their own tokens (sic),” Phelps tweeted. However, with market conditions worsening, VCs began pulling back, and crypto projects are feeling the repercussions. A recent Coingecko research report revealed that over 1.82 million cryptocurrencies failed in 2025 alone, while approximately 1.93 million were successfully listed. This marks a significant increase from 2024, when only 1.38 million tokens failed, and it’s alarming given that 2025 is only halfway through. Crypto Tokens Listed vs Dead. Source: Coingecko The rising number of failures highlights a shift in vision within the industry. What started as a financial revolution has morphed into a gamble for quick profits. This shift has compromised the original purpose of cryptocurrency. In an interview with BeInCrypto, Hank Huang, CEO at Kronos Research, discussed how crypto projects can differentiate themselves from scams and take a stronger stand: “Starting with a smaller market cap captures investors’ attention, showing…

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Filed under: News - @ May 8, 2025 7:25 pm