After the 2021 funding boom, how did these star projects disappear from the public eye?

Four years have flown by in the blink of an eye. The once golden age of cryptocurrency is now just a mirage. During the 2021 wave of funding, star projects raised billions of dollars, but now most have disappeared—some have gone bankrupt, others have become lifeless zombie projects. The institutions and retail investors who rushed to invest back then are now faced with a harsh reality—most of their money is gone for good.

$25.2 Billion Funding Boom: The End Behind the Celebration Has Already Begun

Remember that crazy era? In 2021, Bitcoin broke $60,000, Ethereum hit a record high, and every project labeled “Web3” seemed able to easily raise hundreds of millions of dollars. According to venture capital analysis, crypto startups raised $25.2 billion that year, a 713% increase from $3.1 billion in 2020.

VC firms rushed in, fearing they would miss the next hundredfold project. But instead of gains, they faced disaster. Statistics show that among the over 400 high-funded projects, only a few remain standing. 67 notable cases have already shut down, gone to zero, or seen their activity severely decline, with total funding exceeding $5 billion. The common outcomes for these projects are: disappearing without a trace, announcing shutdowns, being hacked, or collapsing due to ecosystem failure.

The Domino Effect of Centralized Platforms: From “Regulation” to Fraud

The most shocking disasters occurred in the centralized finance sector. FTX, which raised $1.32 billion and was once considered Binance’s biggest competitor, collapsed suddenly in November 2022. Founder SBF was sentenced to 25 years in prison for fraud, shattering investors’ dreams.

Almost simultaneously, Celsius Network also collapsed. This crypto lending platform, which raised $750 million and promised users an 18% annual yield on deposits, saw its token CEL become worthless—its price plummeted from $8 to just $0.02, evaporating 99.73%. Latest data shows CEL is now trading at only $0.02, down 78.97% over the past year.

Names like BlockFi, Voyager Digital, Babel Finance, and Prime Trust once represented the “regulation” and “institutionalization” of crypto finance. They collectively raised over $500 million but fell one after another during the liquidity crisis of 2022, like dominoes. Investors finally realized that so-called “regulation” was just another form of Ponzi scheme.

Collective Disillusionment of NFTs and the Metaverse: A Nationwide Conspiracy of Deception

If the collapse of centralized platforms was driven by fraudulent business models, then the collective death of NFT and metaverse projects resembles a nationwide illusion dissipating.

In 2021, everyone talked about virtual land, digital art, and Play-to-Earn games. Axie Infinity, with its “play and earn” concept, raised $159.5 million. Its token AXS soared to a high of $164.9, and in-game pet NFTs were traded for hundreds of thousands of dollars each. In developing countries like the Philippines, countless people quit their jobs to play full-time, seeing Axie as a chance to change their fate. But after the game’s economic model collapsed, AXS plummeted 99.49%, now only worth $1.14, down 60.29% in a year. Those who invested their life savings finally realized it was just another Ponzi scheme requiring new players to keep the cycle going.

The flagship metaverse project, The Sandbox, raised $93 million, and its virtual land NFTs were snapped up in 2021. The SAND token once hit $8.4. But three years later, this supposed revolutionary internet metaverse is deserted—official Twitter still updates, but comments are sparse. Most NFT platforms focused on music and art have become shell companies, vanished from the market.

The Harsh Truth: Only 5% of Projects Are Worth Living

Looking back at 2021’s lessons, a brutal truth emerges: most projects are cyclical by nature, and only about 5% create lasting value. These are usually only identified at the bottom of a bear market.

Investors need to understand that raising funds doesn’t guarantee a project’s bright future, and high valuation can be worthless. From the $25.2 billion funding boom to today’s bleak landscape, history has taught us plainly: 99% of the fads will eventually disappear.

Halfway through 2026, new cycles are already emerging, and new waves are coming. When the tide recedes, how many projects will still be standing in their swimsuits? History will tell.