KuCoin Ventures weekly report flags crypto washout under high funding costs and tighter liquidity
KuCoin Ventures said in its latest weekly report that the market is reassessing crypto projects through balance-sheet quality, governance, real revenue and cash burn rather than headline funding rounds or token narratives. The report pointed to Movement Labs and Storj Labs, both now in Chapter 11 proceedings, as two different stress cases: one tied to token launch structure and internal controls, the other to legacy debt and long-running operating pressures. It argued that the broader shakeout is not just about highly funded projects failing, but about capital efficiency from the previous cycle being tested in a harder financing environment. The report also focused on macro conditions. Brent crude briefly moved back above $100 a barrel, shipping through the Strait of Hormuz and the Red Sea remained disrupted, and U.S. Treasury yields rose as markets priced inflation risk alongside fiscal and term-premium concerns. In crypto, Bitcoin briefly touched $65,504 on July 27 before slipping back toward $65,100, while spot Bitcoin ETF trading volume fell to about $8.05 billion for the week, the lowest for a full trading week since October 2024. Ethereum spot ETFs, by contrast, posted about $103 million in net inflows, topping Bitcoin ETFs for a second straight week. KuCoin Ventures also highlighted stablecoins and private funding. Global stablecoin market capitalization stood at about $310.36 billion, while Galaxy Research data showed roughly 355 crypto funding deals totaling about $4 billion in the first quarter of 2026, with around 57% going to later-stage projects. Among recent deals, Augustus raised $180 million in a Series B at a $1 billion post-money valuation.








