Foreign Media: Aftermath of High-Valuation Fundraising in the Crypto Industry Becomes Apparent

Foreign media: The crypto industry is undergoing a more pronounced shakeout. CoinDesk, citing the views of Global Settlement Network CEO Ryan Kirkley, reported that the financing boom from 2020 to 2021 pushed many projects to excessively high valuations, but these projects did not establish stable revenues, and the problems will become concentrated and exposed in 2026.

More than 100 projects have already exited in 2026

According to RootData data cited by CoinDesk, over 100 crypto projects have closed, filed for bankruptcy, or basically ceased operations in 2026. Reasons behind this include the decline in altcoin prices, shrinking token treasuries, and a significant decrease in venture capital funding.

Data from Galaxy Research shows that in the first quarter of 2026, there were 355 funding rounds completed in the crypto and blockchain sector, totaling around $4 billion. Compared to the fourth quarter of 2025, the amount of funding roughly halved, but the number of deals only dropped by about 16%, indicating that the decrease was mainly in large-scale funding rounds.

High-valuation fundraising amplifies operational pressure

Kirkley believes that many projects raised large amounts without clear revenue streams or profit paths, so they had to rely on higher valuations for further fundraising, pushing operating pressures ever higher. Once the market weakens, the problems that were previously postponed will quickly surface.

He also mentioned that the funding culture in the crypto industry further amplifies this issue. Unlike traditional industries, when a project announces a large fundraising, it can often drive up token prices and retail investor attention, which makes some teams inclined to focus on the fundraising narrative rather than on business fundamentals.

Token governance exposes efficiency issues

The article also pointed out that the amount announced in fundraising rounds does not always match the funds actually received. Kirkley said that Global Settlement Network has also encountered cases where investors ultimately failed to fulfill their commitments after signing.

In his opinion, decentralized governance also faces real-world tests. Token holders may not consistently participate in governance, and when protocols face operational pressure, governance voting mechanisms can actually slow down the pace of adjustments, making it harder for projects to pivot quickly.

In addition to industry shakeout, Kirkley also noted that the short-term price movements of Bitcoin may affect the rhythm of this adjustment round. He stated that the market is currently closer to a “mild bear market,” and he views $61,200 as a key support level. If this level is lost, leveraged funds could face increased selling pressure.

However, the article also pointed out that the adoption of blockchain technology has not stopped. Kirkley stated that in the past month he has met with seven government representatives interested in blockchain technology. But from the perspective of institutions and governments, their focus is more on reducing costs and transforming financial infrastructure, rather than necessarily adopting the decentralized path originally envisioned by the crypto industry.