According to TechFlow, TANGENT co-founder Jason Choi said in a tweet that founders should be wary of venture capital Ponzi schemes. This scam is already well known in Web 2, but it is even more serious in Web 3. Its operation includes investing $1 million in a $20 million seed round, forcing the founder to raise funds prematurely at a valuation of $100 million, and then investing another $1 million in subsequent rounds. In this way, the initial $2 million investment becomes worth $6 million each on paper (3 times return). This process is repeated to attract the attention of more limited partners, raise more funds based on paper value, and finally charge a 2% management fee. Jason Choi said that TANGENT chose internal capital to avoid this incentive imbalance. He warned that a large number of medium-sized funds tried to run this scam, especially those companies that performed poorly and urgently needed returns. Founders should always question the motives of venture capital firms when they impose early and larger financing.