VC-Backed Tokens Drop Sharply As Short Sellers Fuel Volatility
The post VC-Backed Tokens Drop Sharply As Short Sellers Fuel Volatility appeared on BitcoinEthereumNews.com. VC-backed crypto tokens dropped over 80% from peak 2024–2025 launch prices. Short squeezes fueled brief rallies, but open short interest suggests more volatility ahead. Meme coin hype has shifted liquidity away from long-term VC-funded blockchain projects. High-profile crypto tokens launched between 2024 and 2025 have experienced major declines from their initial valuations, with many now trading at over 80% below their peak prices. The correction follows a pattern in previous cycles, where market enthusiasm during token launches quickly shifts to prolonged downtrends. Analysts report that some of these declines have led to a wave of short liquidations, providing brief rallies that may continue if market conditions remain favorable. Crypto projects backed by prominent venture capital firms, including those supported by ABCDE Capital, have seen sharp reductions in market value. According to data compiled by crypto commentator @Anymose 96, the most severe losses among ABCDE-funded projects reached a 95.5% drawdown from peak valuations. Many of these tokens entered the market through a repeated cycle of private fundraising, exchange listing, and subsequent sell-offs. This pattern has raised concerns among participants about sustainability and the long-term viability of token models that rely heavily on short-term hype. Short Interest and Squeeze Activity Still Active Despite the big retracements, some market observers suggest that short positions in several of these tokens remain substantial. Daan Crypto Trades, a well-followed market analyst, noted that many short sellers have held positions for extended periods. Many high valuation 2024-2025 token launches have come down -80% in most cases and are trading at much more “reasonable” levels. Even after this recent move. On top of that I suspect there’s a ton of shorts that have just been holding for months. A good part of those got… — Daan Crypto Trades (@DaanCrypto) May 11, 2025 The recent price upticks in selected…
The post VC-Backed Tokens Drop Sharply As Short Sellers Fuel Volatility appeared on BitcoinEthereumNews.com.
VC-backed crypto tokens dropped over 80% from peak 2024–2025 launch prices. Short squeezes fueled brief rallies, but open short interest suggests more volatility ahead. Meme coin hype has shifted liquidity away from long-term VC-funded blockchain projects. High-profile crypto tokens launched between 2024 and 2025 have experienced major declines from their initial valuations, with many now trading at over 80% below their peak prices. The correction follows a pattern in previous cycles, where market enthusiasm during token launches quickly shifts to prolonged downtrends. Analysts report that some of these declines have led to a wave of short liquidations, providing brief rallies that may continue if market conditions remain favorable. Crypto projects backed by prominent venture capital firms, including those supported by ABCDE Capital, have seen sharp reductions in market value. According to data compiled by crypto commentator @Anymose 96, the most severe losses among ABCDE-funded projects reached a 95.5% drawdown from peak valuations. Many of these tokens entered the market through a repeated cycle of private fundraising, exchange listing, and subsequent sell-offs. This pattern has raised concerns among participants about sustainability and the long-term viability of token models that rely heavily on short-term hype. Short Interest and Squeeze Activity Still Active Despite the big retracements, some market observers suggest that short positions in several of these tokens remain substantial. Daan Crypto Trades, a well-followed market analyst, noted that many short sellers have held positions for extended periods. Many high valuation 2024-2025 token launches have come down -80% in most cases and are trading at much more “reasonable” levels. Even after this recent move. On top of that I suspect there’s a ton of shorts that have just been holding for months. A good part of those got… — Daan Crypto Trades (@DaanCrypto) May 11, 2025 The recent price upticks in selected…
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