Recently, I came across statistics regarding failures in cryptocurrency tokens, and the numbers are quite shocking. More than half of the tokens seem to have failed as projects, and apparently 2025 was the year of mass extinction for such tokens.

Hearing this makes me realize that the importance of index investing is increasingly growing. I truly feel that going all-in on individual tokens is very risky. Looking at the overall market, in an environment where project failure rates are high, diversified investments tend to lead to more stable results in the end.

In fact, most of these failures concentrated in 2025. That is, many projects came to an end within just one year last year. Seeing this situation, it’s clear how difficult it is to pick individual stocks. With index investing, you can minimize the risks associated with individual failures.

Industry media like CoinDesk also reports on these failure cases thoroughly, making it easier for investors to access information. However, how you utilize that information is crucial. If you’re considering investing in individual tokens, you need to fully understand the high failure rate and think about how to position it within your overall portfolio.

Honestly, I think index investing is more practical in this environment. Losing funds on failed individual projects is less desirable than riding the overall market growth, which tends to lead to more reliable long-term results. Since Gate.io is also increasing the number of index-type investment products, it’s worth considering those options as well.