## Four Years of Time: How Former Investment Darling Disappeared

Do you remember the crypto frenzy of 2021? Bitcoin broke through $60,000, Ethereum repeatedly hit new highs, NFT profile picture auctions fetched sky-high prices, and the metaverse became a national belief. That year, the total funding for crypto startups reached an astonishing $25.2 billion, an eightfold increase compared to $3.1 billion in 2020. Any project labeled "Web3" seemed to turn to gold, easily raising tens of millions or even hundreds of millions of dollars.

However, time has passed, and four years are enough for bubbles to completely burst. According to data, among the top 400 funded projects of that era, only a very few still stand in the market today. Most have either ceased operations, become zombie projects, been attacked and fallen, or experienced systemic crashes. These 67 representative cases carried over $5 billion in funding, but most now have a bleak market value.

## The Domino Effect of Centralized Platforms

The most shocking disaster occurred in the financial services sector. FTX, once considered Binance’s biggest competitor, raised up to $1.32 billion but collapsed spectacularly in November 2022. Its founder SBF was sentenced to 25 years in prison for fraud. Almost simultaneously, Celsius Network, which raised $750 million, also faced its end—this crypto lending platform once promised users an 18% annual return. Its CEL token soared to $8 at its peak but plummeted to $0.02, a 99.73% drop. Currently, CEL trades at $0.03, down 83.42% over the past year, and investor trust has vanished.

Subsequently, platforms like BlockFi, Voyager Digital, Babel Finance, Prime Trust, and others announced issues. They collectively raised over $500 million but fell one after another under liquidity crises, like dominoes. These projects, once representing the "normalization" and "institutionalization" of crypto finance, ultimately exposed fatal flaws in their business models.

## The Illusion Dissolves of NFTs and the Metaverse

If platform collapses stem from fraud, then the collective decline of NFTs and the metaverse is more like a nationwide illusion evaporating.

In the 2021 gaming boom, Axie Infinity raised $159.5 million with the concept of "play-to-earn." The AXS token soared to $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 it as a life-changing opportunity. However, the fragility of the economic model was quickly exposed—AXS plummeted 99.49%, now trading at $1.75, a 72.18% decline over the past year. The once "wealth-building game" ultimately became a classic Ponzi scheme—requiring a continuous influx of new investors to keep it running.

The metaverse flagship project The Sandbox raised $93 million, and its virtual land NFTs were snapped up in 2021, with the SAND token reaching $8.4. Three years later, this so-called metaverse is deserted, with few participants and cold reception despite updates from the official team. SAND now trades at $0.14, down 78.31% in a year, and its illusory promises have long vanished.

Most NFT platforms focused on music and art have disappeared entirely, becoming ruins on the blockchain.

## The Harsh Reality of Market Cycles

Overlaying the glory of 2021 with today’s depression reveals some unavoidable truths: most projects are products of specific cycles, and only about 5% of projects create lasting value. These survivors are usually only clearly identifiable at the lowest points of a bear market.

During the frenzy of a bull market, any project with a story easily attracts funding. But when the tide recedes, only projects with real substance surface. Currently, Bitcoin is priced at $93.06K, Ethereum at $3.22K, and the market remains turbulent. When the next bull-bear transition arrives, how many of today’s projects will stand the test?