@beverlyhh

Venture capital involvement can provide projects with resources, expertise, and credibility, but it can also introduce risks related to centralization and market manipulation. When a project receives significant backing from well-known investors, it often signals confidence in its potential. However, the token allocation to these entities should be carefully examined. If VCs hold a large percentage of the supply, they could exert undue influence over governance or dump their tokens once vesting periods end, causing sharp price drops. Ideally, VC tokens are distributed gradually and locked with transparent vesting schedules. Investors should also review the track record of these firms to determine whether they have a history of long-term support or short-term profit extraction, as this can heavily impact project sustainability.

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