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Crypto failures rise as high valuations and weak revenue models collide
More than 100 crypto projects have shut down, filed for bankruptcy, or disappeared in 2026, as funding and token economics deteriorated.
CoinDesk reports that Global Settlement Network CEO Ryan Kirkley says crypto’s shutdown wave is exposing projects that raised too much money at unrealistic valuations without building sustainable, revenue-generating businesses.
Kirkley argues the industry’s reliance on token-based governance and fundraising incentives made it harder for teams to pivot, while narratives that assumed continued growth often delayed the eventual failures.
CoinDesk cites RootData figures indicating that more than 100 crypto projects have shut down, filed for bankruptcy, or effectively disappeared in 2026, as falling altcoin prices, depleted token treasuries, and scarce venture funding strain operations.
The report also points to Galaxy Research data showing venture investors deployed about $4 billion across 355 crypto and blockchain deals in the first quarter of 2026, roughly half of what was invested in the fourth quarter of 2025, even as the number of deals fell 16%.