Another thought on this bright and sunny day:
VCs are usually not your friends. Very rarely do they have your best interest in mind.
If they’re in your ear pushing you to launch a token, that’s a red flag. At the very least, it should raise your guard.
There are exceptions. But let’s walk through a common scenario:
You’ve got a project. Revenue is stable. Growth is steady. You’ve found product–market fit. There’s no real need for a token.
Yet the VC keeps nudging you to launch one.
Why?
Because in most cases, they want that token to be their exit liquidity.
Think about it:
They give you $100k for 5% equity.
They’re in for the long haul—five to ten years—with no guaranteed return.
In traditional VC, that money might never come back.
Now in Web3, they get both equity and token warrants.
If you launch a token without proper lockups, the moment they’re able to sell, they will.
Why? Because they’re playing with house money. If they can recover their cost basis early, they’ll do it, leaving you with a rekt chart and demoralized community.
Low-tiered VCs don’t care about equity anymore. They want tokens. If the company succeeds, great, that’s just a cherry on top.
(That’s an actual quote from one of them.)
Founders need to be clear on this:
If your project doesn’t need a token, don’t let someone else’s exit plan force your hand. If you want a token and give out warrants, make sure you have parameters protecting the sanctity of your project.
And to the low / mid-tiered VCs: Cut the grifty mindset. Stick with founders for the long term and do right by them. That’ll take you further than short-term games ever will. 2 replies
2 recasts
12 reactions
0 reply
0 recast
0 reaction