A recent study by CryptoRank has highlighted a sobering trend for new crypto projects. Out of 113 tokens launched since their token generation event (TGE) with a market capitalization above $100 million as of July 21, only 8 are currently trading above their launch price. That’s a mere 7.1%. The median return across all tokens? A staggering -95.7%.
Eight Tokens Beat the Odds
The exceptions are led by Hyperliquid’s $HYPE, which surged 1,519% from its launch price. Ondo Finance’s $ONDO followed at 101.4%. Two other tokens, EverValue Coin (EVA) and Midnight Network ($NIGHT), posted more modest gains of 20.3% and 16.5% respectively. Interestingly, even among those in profit, six of the eight only managed double-digit increases at best. $HYPE also recently earned a spot in the new S&P Pantera Digital Asset Index, which notably excluded many high-performing assets like Bitcoin.
Why So Many Failures?
CryptoRank pointed to sell-offs, thin liquidity, and regulatory uncertainty as the primary drivers of the steep declines. Exploits and other security incidents over the past two years have also contributed to major crashes. The study covered tokens across DeFi, gaming, and infrastructure projects — suggesting the problem isn’t limited to any single sector.
The findings come at a time when the broader market is showing signs of recovery. Bitcoin climbed above $66,000 this week on higher ETF inflows and weaker US inflation data. Yet for most newly launched tokens, the path remains bleak. Investors might want to think twice before jumping into the next big TGE. Maybe a healthy dose of skepticism is the safer bet.
