Crypto capital rotates from tokens to stocks as new launches struggle: DWF

CoinTelegraph

by Amin Haqshanas

February 22, 2026

AI-Generated Deep Dive Summary

Crypto capital is increasingly flowing from tokens to publicly listed crypto companies as new token launches struggle to gain traction. According to research by DWF Labs, over 80% of token projects launched in 2025 are trading below their initial listing price within just 90 days. This trend reflects a broader shift in investor sentiment, with many opting for equity exposure through Initial Public Offerings (IPOs) and mergers and acquisitions (M&A) instead of speculative token investments. The data, sourced from Memento Research, reveals that the typical drawdown for these tokens ranges between 50% to 70%, often occurring within the first month of listing. Andrei Grachev, Managing Partner at DWF Labs, highlights that this pattern is consistent and not merely a result of short-term market volatility. He explains that most tokens reach their price peak shortly after launch before experiencing a downward trend as selling pressure intensifies. This shift in investor behavior underscores the growing preference for stability over speculation. The rise in IPO funding and M&A activity in the crypto sector suggests that investors are increasingly favoring established, regulated companies over risky token projects. This trend highlights the challenges faced by new token initiatives in capturing sustained market interest, particularly as the broader crypto market remains volatile. For readers interested in crypto, understanding this shift is crucial for making informed investment decisions. The data indicates a maturing market where investors are prioritizing long-term viability and security over short-term gains. As token launches continue to underperform, the focus on equity exposure in listed companies may signal a more sustainable path for capital allocation in the crypto ecosystem.

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Originally published on CoinTelegraph on 2/22/2026