PANews reported on February 17th that crypto KOL Edgy stated in an article on the X platform that 85% of tokens issued in 2025 will be operating at a loss. Many venture capital-backed projects are barely breaking even, and a significant number are even facing severe losses.

According to charts from Galaxy Research, crypto venture capital firms raised nearly $17 billion in the second quarter of 2022 through more than 80 new funds. However, venture capital firms' returns on investment have been declining since 2022, with the number of new funds hitting a five-year low and the amount raised last quarter only 12% of that in the second quarter of 2022.

Furthermore, the $8.5 billion invested by venture capital firms last quarter was not new funding, but rather surplus funds raised in 2022. The total capital deployed from 2023 to 2025 is roughly equivalent to the amount raised in 2022 alone. The model of raising funds, issuing tokens, and dumping them on retail investors is coming to an end.

Edgy believes that as the influence of venture capital firms diminishes and VCs recede, the projects that will truly succeed will be those with real users and real revenue. At that time, there will be fairer issuance methods and fewer insider sell-offs.