25% of New Crypto Tokens Fail in First Quarter of 2025

A significant collapse in the crypto market has occurred in early 2025, with 1.8 million tokens failing in Q1 alone. This represents nearly 25% of all tokens issued since 2021, as reported by CoinGecko.

Key Highlights of the Collapse

Over half of the approximately 7 million cryptocurrencies listed since 2021 have ceased trading.
The first quarter of 2025 recorded more failures than any entire year previously.
Failures in this period accounted for only 12.6% of total failures from 2021 to 2023.

The downturn coincides with broader market volatility linked to Donald Trump's presidency, which began in January. Following a peak in Bitcoin, markets experienced steep declines, particularly after Trump proposed sweeping tariffs that affected financial markets.

Factors Contributing to Token Failures

The launch of Pump.fun in January 2024 enabled easy token creation, flooding the market with new projects.
In 2024, over 3 million new tokens were created, significantly higher than the 835,000 in 2023.
Approximately 98% of tokens minted on Pump.fun fail to reach the open market.

Investor interest in memecoins has decreased, attributed to a series of unsuccessful launches, including the Libra (LIBRA) token. The combination of simple token creation tools and market volatility is contributing to ongoing challenges within the cryptocurrency space in 2025.