2 ms·

Crypto seems to have been taken over by the very people it sought to undermine. How many of the top crypto projects are now VC backed?

by bix6 2y ago

OccamsMirror 2y ago
Venture capitalists favor crypto projects because they enable significantly faster risk offloading compared to traditional investments, where 7-10 year holding periods are standard. With crypto, the VCs can sell the majority of their tokens after brief lockup period, capitalizing on purely narrative-driven speculative valuations that almost always disconnect from the actual reality, let alone fundamentals. Crypto VC perfectly embodies the Greater Fool Theory. The VCs profit by selling to later buyers motivated more by speculative momentum than intrinsic value. The joke being that VC involvement in a project is often the only thing even driving that momentum. This combination of compressed liquidity timelines, minimal regulatory oversight, and a glut of retail investors who have FOMO from seeing their friends 100x or even 1000x, creates an ideal environment for VCs to systematically transfer risk to less sophisticated market participants at often insane valuations.
- frozenport 2y ago
  lol these guys aren’t vcs Term sheets from vcs increasingly include a “don’t do an ico”
  - aurareturn 2y ago
    A16z was leading pump and dump schemes in 2020 - 2021. Not sure if they are still doing that in 2025.
  - yieldcrv 2y ago
    No true scotsman fallacy There are many VCs in the crypto space, and there are many kinds of liquidity arrangements in the crypto space, a subset of them are coin related and snapshots are the preferred way, now. ICO-type ones are pretty rare but the VCs one debut at extremely high valuations for the crypto space A VC saying “dont do a coin” which is probably what you meant, is also probably not funding a crypto venture. yeah, that makes sense to say you arent investing in a meme coin, since seemingly everyone with a platform sullies their brand this way
JumpCrisscross 2y ago
> How many of the top crypto projects are now VC backed? Deflationary, unregulated currency embraced by plutocrats and finance at the expense of the 99%; news at 11. Idk if there is a social term for the conservation of rug-pulling across a society across time. But it’s almost like we need to get screwed over every generation or so to remember how power and economies work.
yieldcrv 2y ago
The best way to follow crypto is to use it and ignore the sales pitches of ideologues You can completely ignore the “merchant adoption” “mainstream adoption” “lets pretend the man cant figure out how to use this” pitches There is LOTS of value to extract for yourself in a 24/7 borderless global economy with no transaction size limits and already exists
onlybadgers 2y ago
I’m sure most of the proponents of the original idea of a Bitcoin reserve (for its properties, no printing, no VCs etc) don’t love the new form. Such a surprise that David Sacks is the crypto czar and now the “reserve” has been expanded to include SOL also https://x.com/CatfishFishy/status/1896317159728718219 https://x.com/CatfishFishy/status/1896317159728718219
fergie 2y ago
How can a crypto coin even be "VC-backed"? What is the point of crypto coins if they are controlled by nation states? Genuine questions- I don't really understand
- bergen 2y ago
  From a "neutral" perspective it gives them legitimacy From a "maximalist" perspective it gives you access to government From a "scammer" perspective it gets you tax dollars and average Joes

Crypto seems to have been taken over by the very people it sought to undermine. How many of the top crypto projects are now VC backed?

by bix6 2y ago

Crypto seems to have been taken over by the very people it sought to undermine. How many of the top crypto projects are now VC backed?

OccamsMirror 2y ago

Venture capitalists favor crypto projects because they enable significantly faster risk offloading compared to traditional investments, where 7-10 year holding periods are standard. With crypto, the VCs can sell the majority of their tokens after brief lockup period, capitalizing on purely narrative-driven speculative valuations that almost always disconnect from the actual reality, let alone fundamentals. Crypto VC perfectly embodies the Greater Fool Theory. The VCs profit by selling to later buyers motivated more by speculative momentum than intrinsic value. The joke being that VC involvement in a project is often the only thing even driving that momentum. This combination of compressed liquidity timelines, minimal regulatory oversight, and a glut of retail investors who have FOMO from seeing their friends 100x or even 1000x, creates an ideal environment for VCs to systematically transfer risk to less sophisticated market participants at often insane valuations.

frozenport 2y ago
lol these guys aren’t vcs Term sheets from vcs increasingly include a “don’t do an ico”
- aurareturn 2y ago
  A16z was leading pump and dump schemes in 2020 - 2021. Not sure if they are still doing that in 2025.
- yieldcrv 2y ago
  No true scotsman fallacy There are many VCs in the crypto space, and there are many kinds of liquidity arrangements in the crypto space, a subset of them are coin related and snapshots are the preferred way, now. ICO-type ones are pretty rare but the VCs one debut at extremely high valuations for the crypto space A VC saying “dont do a coin” which is probably what you meant, is also probably not funding a crypto venture. yeah, that makes sense to say you arent investing in a meme coin, since seemingly everyone with a platform sullies their brand this way

JumpCrisscross 2y ago

> How many of the top crypto projects are now VC backed? Deflationary, unregulated currency embraced by plutocrats and finance at the expense of the 99%; news at 11. Idk if there is a social term for the conservation of rug-pulling across a society across time. But it’s almost like we need to get screwed over every generation or so to remember how power and economies work.

yieldcrv 2y ago

The best way to follow crypto is to use it and ignore the sales pitches of ideologues You can completely ignore the “merchant adoption” “mainstream adoption” “lets pretend the man cant figure out how to use this” pitches There is LOTS of value to extract for yourself in a 24/7 borderless global economy with no transaction size limits and already exists

onlybadgers 2y ago

I’m sure most of the proponents of the original idea of a Bitcoin reserve (for its properties, no printing, no VCs etc) don’t love the new form. Such a surprise that David Sacks is the crypto czar and now the “reserve” has been expanded to include SOL also https://x.com/CatfishFishy/status/1896317159728718219 https://x.com/CatfishFishy/status/1896317159728718219

fergie 2y ago

How can a crypto coin even be "VC-backed"? What is the point of crypto coins if they are controlled by nation states? Genuine questions- I don't really understand

bergen 2y ago
From a "neutral" perspective it gives them legitimacy From a "maximalist" perspective it gives you access to government From a "scammer" perspective it gets you tax dollars and average Joes