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The risks and benefits of VCs for crypto communities

Published 07/08/2022, 09:44 AM
Updated 07/08/2022, 10:00 AM
The risks and benefits of VCs for crypto communities
TWTR
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Traditional venture capital funds drive valuations through multiple funding rounds. Startups aim for initial public offerings or other exits. Then the sharemarket decides upon a more realistic valuation.

But in cryptoland, tokens introduce market capitalization while a company is being built.

VC funding is necessary, but are VCs always working in the best interest of the community?

Even VCs were LUNAtics

What is a crypto VC anyway?

Squid Games memes emerged quickly after the LUNA collapse, as its founder Do Kwon is South Korean. Source: Twitter (NYSE:TWTR)

Crypto VC firm to a hedge fund is a continuum

a16z has provided VC funding to everyone who is anyone in crypto. Source: a16z
When VC bets pay off, they pay off big time.

Liquidity vs. long-term community building

VCs add investor network effects and tokenomics advice

Wen token sale?

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VCs can actually be quite helpful in building a community, too.

Investor protections

Are faceless DAOs not accountable to investors?

Continue Reading on Coin Telegraph

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