Tokens Face Significant Price Decline Within 90 Days of Listing

Research by DWF Labs has revealed that a significant majority of tokens issued in the market fail to meet their initial listing prices within a short period of time. The study found that over 80% of tokens fall below their issue price within 90 days after their Token Generation Event (TGE).

The main factors contributing to this phenomenon are attributed to overvaluation and declining liquidity, which erode investor confidence. Additionally, factors such as airdrops and early unlock sell-offs further exacerbate the situation.

Contrary to this trend, crypto-related companies have been performing strongly through Initial Public Offerings (IPOs) and Mergers & Acquisitions (M&As). The report projects that crypto financing is expected to grow significantly, reaching $14.6 billion in 2025, while total M&A transaction volume is forecasted to reach a five-year high of $42.5 billion.

The study highlights the disparity in price-to-sales premiums between stocks and tokens, with stocks enjoying a higher premium (7-40x) compared to tokens (2-16x). This difference is attributed to factors such as institutional access, potential for index inclusion, and diversified investment strategies.