Top Crypto VCs No Longer Guarantee Profits
Big crypto venture capital (VC) firms are no longer a sure way to make money from new tokens. Data from Galaxy Research shows that about 85% of tokens launched in 2025 are now trading below their launch price. Even projects backed by famous VC firms are struggling—many are barely breaking even, and some are losing a lot of value.
This is very different from 2022. Back then, crypto VCs raised almost $17 billion in just one quarter (Q2 2022) across more than 80 new funds. Many investors rushed in, funding projects that only had a token plan and a presentation.
Today, the situation has changed. VC returns have been falling since 2022, and the number of new crypto funds is now at its lowest level in five years. Fundraising last quarter was only 12% of what it was at the 2022 peak.
Although VCs invested $8.5 billion last quarter—an 84% increase compared to the previous quarter—analysts say most of this money actually came from funds raised during the 2022 boom. In fact, the total money invested from 2023 to 2025 is about the same as what was raised in 2022 alone.
There is, however, some good news. With VC money harder to get, projects are now forced to focus on real products, real users, and sustainable income, instead of just token hype. Less VC control could also mean fewer sudden token unlocks and better alignment between project teams and their communities.
A DeFi research firm, The DeFi Edge, summed it up well:
“When VC influence fades, the projects that win are the ones with real users and real revenue. Hopefully fewer blockchains, and more builders focused on products instead of fundraising.”
Separately, Japan’s Metaplanet reported record profits and increased its Bitcoin holdings, according to Bitcoin.com.
