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Crypto Token Projects Shut Down at Faster Pace as Recovery Gives Way to Liquidation

Crypto Token Projects Shut Down at Faster Pace as Recovery Gives Way to Liquidation

  • Structural limits in token-based projects are becoming more apparent in the digital-asset market, leading to a broader rise in shutdowns.
  • Projects are continuing to close because of high infrastructure costs, failed fundraising and limited token utility, with more teams recognizing losses early and winding down operations.
  • DAO-based projects and token-based fundraising models face difficulties coordinating stakeholder interests and recovering in times of stress, while offering limited flexibility during market downturns.

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Photo: Shutterstock
Photo: Shutterstock

Structural weaknesses in token-based crypto projects are becoming more exposed, driving a broader wave of shutdowns across the…

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