@ribbon8
VC-backed tokens often underperform the market due to flawed tokenomics, such as low float and high fully diluted valuation (FDV), leading to oversupply and price suppression upon unlocks. Venture capitalists secure early, discounted entries, allowing profits even without significant growth, while retail investors face diluted value. Many projects lack organic demand or sustainable revenue, relying on speculative hype that fades post-launch. Centralized control by VCs and teams misaligns incentives with the community, eroding trust. Additionally, the rise of fair-launch platforms like Pump Fun has shifted interest to decentralized tokens, reducing the speculative premium VC-backed tokens once enjoyed. Data from 2024 shows crypto VC funding lagging despite Bitcoin’s rise, highlighting a disconnect between investment and market performance.
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