Crypto fundraising has reached a five-year low, with venture capital returns continuously declining since 2022. In the last quarter, fundraising amounted to only 12% of the nearly $17 billion raised in the second quarter of 2022. The $8.5 billion invested last quarter was not new capital but leftover funds from 2022. According to crypto KOL Edgy, 85% of token issuance projects in 2025 are operating at a loss, with venture-backed projects barely breaking even. The traditional model of fundraising and token issuance is shifting, as projects with real users and revenue are expected to lead to fairer token launches and fewer insider sell-offs.