Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Menu

Categories:

Hot right now:

Follow on:

Coinsurges provides coverage of fintech, blockchain, and Bitcoin, delivering the most recent news and analyses on the future of money. Stay up-to-date with live prices, charts, and trading options for the top exchanges. Keep track of the day's top cryptocurrency gainers and losers, as well as which coins have experienced gains and losses in the past 24 hours.
Trust Coinsurges as your go-to source for all news and updates in the industry.

Early-stage crypto investors face 50% average loss on locked positions

Share This Post

Locked token holders have experienced an average drawdown of nearly 50% for their locked positions compared to over-the-counter (OTC) valuations in May 2024.

According to data published by STIX founder Taran Sabharwal on April 22, holders could have exited their positions at double the current spot prices the previous year.

Sabharwal shared data comparing fully diluted valuation (FDV) estimates from May 2024 against current FDVs as of April 2025 for major tokens, including JITO, BERA, ZRO, WLD, TIA, IO, W, ZK, EIGEN, SCR, and BLAST.

Widespread devaluations across top tokens

Among the projects tracked, nearly all showed considerable valuation declines. SCR and BLAST recorded the largest year-over-year drawdowns at -85% and -88%, respectively.

EIGEN followed closely with a -75% drop. Other tokens, such as ZK (-64%), W (-50%), IO (-48%), and TIA (-44%), also posted substantial declines relative to their locked OTC valuations from the previous year.

Only JITO posted an increase, with a +75% gain relative to last year’s valuations, standing out as an exception in an otherwise broadly negative environment for locked token holders.

According to Sabharwal, the disparity between OTC valuations and current spot prices highlights the risks of investing in illiquid, locked positions during early-stage token rounds. 

While these early investments are typically structured with the expectation of long-term upside, market volatility and project-specific factors over the past 12 months have led to substantial underperformance relative to initial valuations.

In the same period, the 22 sectors in the crypto market, in addition to Bitcoin (BTC) and Ethereum (ETH), experienced an average correction of 40.7%, based on Artemis data. This is nearly 20% better than the performance of locked tokens. 

Implications for token markets and early investors

The data suggests that many early-stage token investors who committed to locked positions may have missed better exit opportunities in the secondary market throughout 2024. 

Locked tokens typically come with vesting schedules or transfer restrictions, which prevent immediate liquidity and expose holders to market shifts during the lock-up period.

The data shared by Sabharwal also reflects broader market conditions affecting fully diluted valuations across the crypto sector. Newer projects face intensified pressure in secondary markets compared to their initial fundraising rounds.

The post Early-stage crypto investors face 50% average loss on locked positions appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin balance sheet adoption could hit 20% by 2026

Bitwise and UTXO Management project that 20% of all Bitcoin (BTC) could migrate to institutional balance sheets by end-2026, according to a new report published by Bitwise and UTXO Management on May

TRON Network Strengthens Global Payment Infrastructure as Bridge, a Stripe Company, Expands Integration

This content is provided by a sponsor PRESS RELEASE Geneva, Switzerland, May 23, 2025 – TRON DAO, the community-governed DAO dedicated to accelerating the decentralization of the internet through

Bitcoin Price Analysis: Constructive Market Structure Signals Parabolic Rally Ahead

The post Bitcoin Price Analysis: Constructive Market Structure Signals Parabolic Rally Ahead appeared first on Coinpedia Fintech News A weakening US dollar amid rising crypto optimism has favored

Massive $200 Million Sell Wall Holds Bitcoin At $111,000 And $113,000 – Here’s What We Know

After several days of asking from bullish investors, Bitcoin has finally carved out a new all-time high above $108,800, reaching as high as $111,814 in the last 24 hours The breakout to the new

Pi Network token makes derivatives debut on Kraken with perpetual futures offering 20x leverage

Kraken has introduced perpetual futures contracts for Pi Network’s native token, PI, allowing traders to speculate on its price with up to 20x leverage, according to a May 23 announcement The

Solana MACD Curling Up – Is This The Prelude To A Breakout?

Solana (SOL) is beginning to show signs of renewed strength as technical indicators hint at a potential breakout On the weekly chart, the MACD is curling up and has recently crossed above the signal