Crypto equities attract flows as 80% of TGEs drop: DWF

DWF Labs: over 80% of tokens fall below TGE in 90 days

Over 80% of newly issued tokens fall below their token generation event (TGE) price within 90 days of listing, according to FinanceFeeds, citing analysis by dwf labs. The same coverage indicates investor capital is rotating from token launches into publicly listed crypto companies and mergers and acquisitions (M&A), characterizing the shift as structural rather than cyclical.

This pattern aligns with observed post-listing drawdowns where initial pricing often exceeds sustainable demand. The findings underscore a changing funding mix in digital assets as markets prize durability, governance, and audited financials over launch momentum.

Why tokens underperform: unlocks, liquidity, inflated TGE valuations

Selling pressure from unlock schedules and airdrops, thin order books, and elevated TGE valuations are primary drivers of early underperformance, according to DWF Labs’ commentary. Managing Partner Andrei Grachev has also framed the rotation as a move toward fundamentals and sustainability.

Mechanically, large early-holder unlocks create immediate supply, while aggressive initial pricing forces repricing as real demand emerges. Liquidity and market-making shortfalls can amplify slippage, widening gaps between TGE levels and stabilized trading ranges.

Institutional behavior helps explain preference shifts. “When risk appetite tightens, investors don’t stop craving exposure, so they start demanding cleaner ownership, clearer disclosure, and a path to enforceable rights,” said Maksym Sakharov, Co‑Founder and Group CEO at WeFi.

Capital rotates to crypto equities and M&A deals

Public crypto-equity names command materially higher valuation multiples than tokens, roughly 7–40x sales for listed companies versus 2–16x for tokens, based on data from InsightsWire. The same dataset highlights approximately $14.6 billion in crypto IPO fundraising in 2025 and more than $42.5 billion in M&A, indicating where risk capital is being absorbed.

That valuation premium reflects governance, auditability, index eligibility, and institutional custody rails that align with mandate constraints. These attributes reduce friction for allocators who may be restricted from holding unregistered tokens yet can participate in equity offerings or acquisitions.

At the time of writing, Coinbase (COIN) closed near $171 and traded around $165 overnight, based on data from Yahoo Scout. Prices are provided as market context, not guidance.

What this means for issuers and investors

Issuer checklist: tokenomics design, unlock schedules, liquidity and market-making

Issuers can evaluate whether TGE valuations reflect realistic demand rather than headline multiples. Smoother unlock schedules may mitigate early supply shocks. Documented liquidity plans and accountable market‑making can help narrow spreads and reduce slippage.

Investor lens: post-TGE risks, institutional constraints, equity vs token exposure

Post-TGE, investors face dilution from unlocks, airdrop overhangs, and liquidity gaps that can pressure prices. Institutions often prefer regulated equity exposure that fits mandates. Equity in infrastructure, custody, and compliance businesses can express the same theme with different risk.

This article summarizes reported findings and commentary. It is not investment advice, and it does not evaluate individual projects or securities.

Tokens and equities involve different rights, disclosures, and risks. Institutional mandates and regulations can constrain token holdings, channeling exposure toward listed equities or M&A participation.