Study: Nearly 45% of VC-backed crypto projects have been discontinued

PANews reported on June 4 that according to Bitcoin.com reports, a joint study by Chainplay and Strorible showed that nearly 45% of the 1,181 crypto projects that received venture capital from January 1, 2023 to December 31, 2024 have been suspended, and 77% have monthly revenues of less than $1,000. In terms of venture capital institutions, Polychain Capital has the highest investment failure rate, with 44% of the participating projects terminated and 76% of the projects not generating effective income. Yzi Labs (formerly Binance Labs) supports projects with a 72% failure rate; Top venture capital firms such as Circle, Delphi Ventures, Consensys, and Andreessen Horowitz have also had a large number of supported projects suspended, and many more than two-thirds of them have failed.

Among the angel investors, former Coinbase CTO Balaji Srinivasan topped the list with 57% of "zombie projects"; Arthur Hayes at 34 per cent, Santiago Santos at 15 per cent, and projects supported by Sandeep Nailwal and Stani Kulechov each had 10 per cent suspended. The data shows that the size of fundraising is significantly correlated with the success rate. The failure rate of projects raising more than $50 million is significantly lower, while 33% of projects that have raised less than $5 million have failed and 20% have ceased operations.

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