The cryptocurrency market has shown improvement, with a total market cap exceeding $3 trillion. This uptrend reflects growing investor confidence. Nevertheless, there is a concerning trend as many newly listed tokens struggle to survive due to a lack of sustainable growth strategies.
Venture capitalists are being pointed at as contributing to the problem. By primarily focusing on profits, they are seen as hindering the long-term viability of the crypto industry. David Phelps from JokerRace highlighted how VCs operate in the crypto sector, utilizing top-down funding to mint tokens at high valuations without establishing a foundation for long-term success.
As market conditions worsen, VCs are pulling back, causing repercussions for crypto projects. Research shows a rise in the number of failed cryptocurrencies in 2025 compared to previous years, signaling a shift from the industry's original vision of financial revolution to a pursuit of quick gains.
To stand out amidst scams and failures, crypto projects are advised to concentrate on genuine value creation. By setting realistic goals, forming strategic partnerships, and involving the community in decision-making, companies can build long-term trust and value. Emphasizing revenue generation over token price speculation is crucial for sustainability and consumer adoption.
It is imperative for crypto companies to refocus on establishing real value and sustainable revenue streams to avoid a collapse in the market. This realignment is vital in preserving the original intent of cryptocurrencies – providing financial autonomy and preventing a potential crisis in the market.