Analysts: Number of new crypto funds hits 5-year low; total funds raised from 2023 to 2025 will only be close to the total for 2022.

Crypto KOL Edgy stated on the X platform that 85% of token issuance projects will be unprofitable in 2025. Venture capital-backed projects are barely breaking even, with some even incurring significant losses. A chart from Galaxy Research shows that in the second quarter of 2022, crypto venture capital firms raised nearly $17 billion through over 80 new funds; however, their investment returns have been declining since 2022, with the number of new funds hitting a five-year low, and last quarter's fundraising amount only 12% of that in the second quarter of 2022. The $8.5 billion invested by venture capital firms last quarter was not new capital, but rather surplus funds raised in 2022. The total capital deployed from 2023 to 2025 is roughly equivalent to the total funds raised in 2022. The model of raising funds, issuing tokens, and dumping them on retail investors is coming to an end. As the influence of venture capital firms diminishes, projects with real users and revenue will prevail, leading to fairer issuance methods, less insider selling, and more developers focusing on product optimization rather than fundraising.