DeFi Daily News
Friday, August 29, 2025
Advertisement
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos
No Result
View All Result
DeFi Daily News
No Result
View All Result
Home Cryptocurrency Ethereum

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

Gino Matos by Gino Matos
April 22, 2025
in Ethereum
0 0
0
rewrite this title Early-stage crypto investors face 50% average loss on locked positions
0
SHARES
0
VIEWS
Share on FacebookShare on TwitterShare on Telegram
Listen to this article


rewrite this content using a minimum of 1000 words and keep HTML tags

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.

Mentioned in this article

and include conclusion section that’s entertaining to read. do not include the title. Add a hyperlink to this website [http://defi-daily.com] and label it “DeFi Daily News” for more trending news articles like this



Source link

Tags: AverageCryptoEarlyStageFaceInvestorslockedLossPositionsrewritetitle
ShareTweetShare
Previous Post

Elon Musk needs to recommit to Tesla and say he’s leaving Trump administration: Wedbush’s Dan Ives

Next Post

IT’S BEGUN: Bitcoin Rallies Towards $100k as Blackrock & Japan CAUGHT Buying

Next Post
IT’S BEGUN: Bitcoin Rallies Towards 0k as Blackrock & Japan CAUGHT Buying

IT'S BEGUN: Bitcoin Rallies Towards $100k as Blackrock & Japan CAUGHT Buying

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

No Result
View All Result
  • Trending
  • Comments
  • Latest
Jared Kushner Nears Deal to Purchase Ownership Stake in Phoenix

Jared Kushner Nears Deal to Purchase Ownership Stake in Phoenix

July 15, 2024
zkLink Revolutionizes Telegram User Onboarding with One-Click Web3 Integration Using MagicLinks Toolkit

zkLink Revolutionizes Telegram User Onboarding with One-Click Web3 Integration Using MagicLinks Toolkit

September 17, 2024
rewrite this title Falcon Finance Launches On-Chain Insurance Fund With M Initial Capital

rewrite this title Falcon Finance Launches On-Chain Insurance Fund With $10M Initial Capital

August 28, 2025
I stumbled upon a Duolingo hack, and now I regret it

I stumbled upon a Duolingo hack, and now I regret it

October 12, 2024
Crypto Sentiment Shift in 2025📈CoinDepo INTERVIEW

Crypto Sentiment Shift in 2025📈CoinDepo INTERVIEW

August 3, 2025
Top 5 Superior Ethereum Faucets to Earn Free ETH in 2024

Top 5 Superior Ethereum Faucets to Earn Free ETH in 2024

July 16, 2024
Crypto Adopted by US Government (Bitcoin, PYTH, LINK, CRO)

Crypto Adopted by US Government (Bitcoin, PYTH, LINK, CRO)

August 29, 2025
rewrite this title Crypto Liquidations Top 0 Million as Bitcoin, Ethereum and XRP Sink Into the Weekend – Decrypt

rewrite this title Crypto Liquidations Top $500 Million as Bitcoin, Ethereum and XRP Sink Into the Weekend – Decrypt

August 29, 2025
rewrite this title Facundo Buonanotte transfer news: Chelsea in talks to sign Brighton forward on loan ahead of Leeds

rewrite this title Facundo Buonanotte transfer news: Chelsea in talks to sign Brighton forward on loan ahead of Leeds

August 29, 2025
rewrite this title Despite XRP’s 10x Lead, LINK Is The Real Banking Coin, Analyst Says

rewrite this title Despite XRP’s 10x Lead, LINK Is The Real Banking Coin, Analyst Says

August 29, 2025
rewrite this title Flare Network Partners With Everything Blockchain To Integrate XRPFi For Institutional Yield Management

rewrite this title Flare Network Partners With Everything Blockchain To Integrate XRPFi For Institutional Yield Management

August 29, 2025
rewrite this title and make it good for SEO 3 Underrated Altcoins That Could Dominate the 2025 Crypto Altseason

rewrite this title and make it good for SEO 3 Underrated Altcoins That Could Dominate the 2025 Crypto Altseason

August 29, 2025
DeFi Daily

Stay updated with DeFi Daily, your trusted source for the latest news, insights, and analysis in finance and cryptocurrency. Explore breaking news, expert analysis, market data, and educational resources to navigate the world of decentralized finance.

  • About Us
  • Blogs
  • DeFi-IRA | Learn More.
  • Advertise with Us
  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Cryptocurrency
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi-IRA
  • DeFi
    • NFT
    • Metaverse
    • Web 3
  • Finance
    • Business Finance
    • Personal Finance
  • Markets
    • Crypto Market
    • Stock Market
    • Analysis
  • Other News
    • World & US
    • Politics
    • Entertainment
    • Tech
    • Sports
    • Health
  • Videos

Copyright © 2024 Defi Daily.
Defi Daily is not responsible for the content of external sites.