Insiders Trading stopped buying new tokens for two years, trapping retail investors in a liquidity crisis.

Over 80% of tokens launched in 2025 are currently trading below their initial valuation, reflecting a harsh reality of the altcoin market. According to Memento Research, in 118 major token issuance events, as many as 84.7% of tokens fell in price compared to their initial value per share (FDV) upon listing, with a median drop of approximately 71%. This suggests that TGEs are increasingly becoming more of a liquidity distribution tool than a growth starting point.

The core issue lies in the "low circulation, high FDV" model. Most projects only release 10-15% of their total supply to the market, but price their tokens based on the entire FDV, including the team's tokens and unreleased investment fund tokens. This structure creates the illusion of scarcity in the short term, while underlying selling pressure always looms large. In fact, all 28 projects launching in 2025 with over $1 billion in FDV have seen significant price drops after listing.

Notably, insiders and liquidity funds have largely stayed out of TGE for years, leaving the primary market to retail investors. With institutional demand absent, the token price inevitably plummeted under selling pressure from airdrops, market makers, and related internal wallets.

The year 2025 sends a clear message: tokens are no longer an unconditional fundraising tool. The market is rejecting inflated valuations and forcing projects to return to models tied to real value. For investors, TGEs are increasingly resembling exit points rather than opportunities, and patience after listing becomes crucial for survival.

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