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Crypto Token Launders Face Liquidity Trap as 85% of 2025 Tokens Trade Below FDV

Crypto Token Launders Face Liquidity Trap as 85% of 2025 Tokens Trade Below FDV

Published:
2025-12-24 10:55:02
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BTCCSquare news:

The cryptocurrency market is grappling with a severe liquidity crunch as institutional buyers retreat from new token launches. Data reveals 84.7% of 2025's token generation events now trade below their initial fully diluted valuations, with median losses hitting 71%.

Memento Research's analysis of 118 major launches exposes the breakdown of the 'low float, high FDV' model. Retail investors buying circulating supply face disproportionate losses as vesting schedules and venture capital unlocks distort price discovery.

'TGEs have become exit liquidity rather than growth catalysts,' the report concludes. The trend signals a fundamental shift in crypto capital formation, where pre-launch speculation now dictates post-listing performance.

|Square

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