A study by DWF Labs has revealed a significant trend in the crypto market: investor capital is shifting away from token launches and towards publicly listed crypto companies. The research, which analyzed data from hundreds of token launches across leading exchanges, found that over 80% of projects trade below their initial price, with typical drawdowns of 50-70% within 90 days.
The study suggests that this trend is not a temporary market phenomenon, but rather a structural shift in investor behavior. Large investors are increasingly seeking assets with governance, transparency, and legal clarity, which are more readily available in publicly listed companies than in token launches.
One key indicator of this trend is the surge in crypto-related initial public offerings (IPOs) and merger and acquisition activity. In 2025, IPOs raised around $14.6 billion, while M&A activity surpassed $42.5 billion – the strongest level in five years.