Crypto’s extinction event: why 11.6 million token failures could create the biggest wealth transfer of the next decade

For much of crypto’s history, token launches followed a familiar path. Build a credible product, generate excitement, create early liquidity and allow markets to determine value. The process was rarely perfect, but it functioned well enough to sustain repeated cycles of enthusiasm and capital formation. During 2025, however, that model appeared to break down entirely. According to research from CoinGecko, more than 11.6 million tokens failed during the year, representing over 86% of all cryptocurrency failures recorded since 2021. Approximately 85% of newly launched tokens traded below their initial valuations, whilst the median project declined by more than 70% from launch levels. Furthermore, according to Memento Research which tracked 118 token generation events across the year, circa 85% of tokens launched in 2025 are now trading below their initial valuations, with the median token down more than 70% from where it started. The scale of destruction made 2025 the most damaging year…