A report by The DeFi Edge reveals that by 2025, 85% of tokens are trading below their initial offering prices, with venture capital-backed projects experiencing declining returns and significant losses. In Q2 2022, crypto venture capital raised nearly $17 billion in a single quarter, with over 80 new funds established. However, since 2022, returns on venture capital investments have consistently decreased, and the number of new funds has hit a five-year low, with recent fundraising amounting to just 12% of Q2 2022 levels. Although venture capital investments reached $8.5 billion last quarter, marking an 84% increase from the previous quarter, this was primarily due to capital allocated in 2022 rather than new investments. The report highlights the decline of the traditional model of venture capital entry, token issuance, and retail sell-off, suggesting that future project success will depend on genuine user engagement and actual revenue, potentially leading to fairer token distributions and reduced insider sell-offs.