Research: Nearly 45% of VC-backed Crypto Projects Have Ceased Operations

According to a report by https://t.co/LudiZZ7AB6, a joint study by Chainplay and Strorible reveals that of the 1,181 crypto projects that received venture capital funding between January 1, 2023, and December 31, 2024, nearly 45% have ceased operations, and 77% generate less than $1,000.00 in monthly revenue.

Regarding venture capital firms, Polychain Capital has the highest failure rate, with 44% of its invested projects terminated and 76% failing to generate effective revenue. Yzi Labs (formerly Binance Labs) has a project failure rate of 72%. Top venture capital firms such as Circle, Delphi Ventures, Consensys, and Andreessen Horowitz have also seen a large number of their supported projects cease operations, with many experiencing failure rates exceeding two-thirds.

Among angel investors, former Coinbase CTO Balaji Srinivasan has the highest proportion of "zombie projects" at 57%, followed by Arthur Hayes at 34%, Santiago Santos at 15%, and Sandeep Nailwal and Stani Kulechov, each with 10% of their supported projects ceasing operations. Data indicates a significant correlation between fundraising scale and success rate. Projects that raised over $50.00 million have a significantly lower failure rate, while among projects that raised less than $5.00 million, 33% have already failed and 20% have ceased operations.