In 2024, the top ten crypto token launches raised more than $1 billion.
While this figure, along with the average amount raised per offering, is impressive—particularly compared to pre-2022 benchmarks set by Bitcoin and Ethereum—it doesn’t provide clear insights into the potential success of these tokens or the investors’ future satisfaction with them.
Future developments will ultimately hold more significance and clarity than these fundraising totals in what is expected to be a complex and unpredictable market landscape.
With several major unlock events on the horizon, investors are concentrating on capital efficiency and timing. They seek to determine whether projects have successfully transformed their funding into tangible value for investors. Given the promise of significant market activity in the coming months, these considerations will be crucial in predicting future outcomes.
Capital Efficiency: Which Projects Succeeded with Less?
Several projects have distinguished themselves not by the size of their fundraising but by how effectively they have converted that capital into returns. Leading this category is $ATH, which raised just $9 million yet has surged to a market valuation of $221 million—resulting in an extraordinary 24.5x ROI.
Other projects achieving high efficiency include $Swell, which transformed a $3.75 million raise into a current value of $24.22 million (6.45x ROI), and $IO, which has expanded its $30 million raise to a present valuation of $145.5 million (4.85x ROI). Both $Blast and $Eigen also delivered returns exceeding 4x for their initial investors, despite their larger fundraising totals of $20 million and $164.5 million respectively.
Meanwhile, $Cloud and $ZRO achieved moderate results. $Cloud raised $6.1 million and is currently valued at $17.3 million, reflecting an ROI of 2.83. $ZRO, despite a hefty $263.3 million raise, offers an ROI of just 2.8 times the initial investment.
These projects illustrate that substantial returns can come not necessarily from large initial fundraising but often from smaller rounds that facilitate more effective growth, attributed to streamlined resource allocation and a clearer alignment with market needs.
Underperforming Allocations: Large Raises, Low ROI
Conversely, numerous token launches in 2024 have seen dismal performance, with current valuations substantially lower than their initial fundraising amounts. Consider the total capital that has been raised across these various projects and the plight of investors after several months.
Leading this underperforming group is $ZK, which raised $458 million but is now valued at only $194 million, resulting in a 0.42x ROI. Following closely is $Scroll, with $80 million raised and a market value of $48.76 million (0.61x ROI). Lastly, $Avail has brought in $70 million but currently has an estimated value of just $45.17 million (0.65x ROI).
These scenarios serve as a stark reminder for early investors of the unrealized losses they face. They highlight that merely attracting large amounts of investment does not guarantee marketplace success. Fundamental shortcomings in a project’s business model or shifts in market sentiment can quickly turn high expectations from a significant capital raise into disappointment.
As the market evolves, these tokens may either recover their value or continue to struggle. Should the latter occur, they risk being seen as mere “pump and dump” schemes.
Upcoming Unlocks: June to November 2025
A critical factor likely to influence price dynamics in the upcoming months will be the timing of token unlocks. Many new launches from 2024 feature a cliff vesting structure, which implies a holding period before a substantial number of tokens are released simultaneously. Understanding when these unlock events are scheduled could provide valuable insights into potential price movements.
The unlock schedule is as follows:
- June: $ZK, $ZRO, $Blast, $ATH
- July: $Avail, $Cloud, $IO
- October and November: $Eigen, $Scroll, $Swell
These unlocks could serve as pivotal moments for each token. If investor sentiment remains cautious, the sudden increase in supply may create selling pressure and drive prices down further. Conversely, if the projects are performing well and market conditions are favorable, the unlocks could occur with minimal disruptions.
Regardless of whether these dates bring joy or concern to investors, they are significant. They mark key moments for early investors to regain liquidity and either reinvest in new opportunities or withdraw their investments.
Final Thoughts
The 2024 cycle has produced diverse outcomes for investors, with ROIs ranging from 0.42x to 24.5x. What becomes evident is that the size of a fundraising round is not the sole determinant of success. Capital efficiency and effective execution remain crucial factors.
As token unlocks happen in high volumes, the market is likely to experience increased volatility, particularly around underperforming assets. To navigate the coming months with less risk, it’s vital to monitor unlock schedules closely and incorporate this data when assessing opportunities and risks within this developing asset class.