Study: Nearly 45% of VC-backed crypto projects have ceased operations

According to ChainCatcher, citing Bitcoin.com, a joint study by Chainplay and Strorible reveals that among 1,181 crypto projects that received venture capital funding between January 1, 2023, and December 31, 2024, nearly 45% have ceased operations, and 77% have monthly revenues below $1,000. Regarding venture capital firms, Polychain Capital has the highest failure rate, with 44% of its invested projects terminated and 76% of projects not generating effective revenue; Yzi Labs (formerly Binance Labs) has a project failure rate of 72%; top venture capital companies such as Circle, Delphi Ventures, Consensys, and Andreessen Horowitz also have a large number of supported projects that have ceased operations, with more than two-thirds of many projects failing. Among angel investors, former Coinbase CTO Balaji Srinivasan has the highest proportion of "zombie projects" at 57%; Arthur Hayes is at 34%, Santiago Santos at 15%, and projects supported by Sandeep Nailwal and Stani Kulechov each have a 10% cessation rate. Data shows that fundraising scale is significantly correlated with success rate. Projects that raised over $50 million have a significantly lower failure rate, while among projects that raised less than $5 million, 33% have failed and 20% have ceased operations.