What is VC Coin and why should it be avoided?
In recent years, many people have grown to dislike VC Coin, but many are unaware of what VC Coin actually is and why it is disliked. $VANA is a typical example of VC Coin, characterized by the following:
1. It has seemingly advanced real projects, unlike meme coins which are worthless aside from speculation.
2. It has numerous large institutional investments, with a very impressive background.
3. The circulation volume is extremely low, while the market value is very high.
Due to these characteristics, many new investors see such impressive descriptions and visible real projects, leading them to believe the token has significant value and will rise in the future. However, after purchasing, they find that these coins make a lot of noise but have little substance; although the promotion is strong, the performance upon launch is extremely disappointing, as it tends to continuously decline after launch. This is primarily due to the low circulation rate and the large amount of tokens that are yet to be unlocked. Additionally, many large institutions participated in the financing at extremely low prices, so they typically choose to sell immediately upon each unlocking, resulting in a significant drop in the token's price every time it is unlocked. The decline continues until 80% of the tokens are unlocked, and during this time, these poor-quality coins also absorb a large amount of liquidity from the market, causing other tokens to rise slowly and fall rapidly. Therefore, VC Coins are harmful to investors and also detrimental to other tokens. However, due to the greed of exchanges, they continue to list VC Coins for listing fees and cashing out private placements, continuously harvesting new investors.
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