In fact, the industry is experiencing betting behaviors every day, and we are also in such an environment. Today, many project financing behaviors or community participation behaviors are all about betting. Betting on higher valuations, betting on stronger expectations, betting on better returns.
Everyone is building Lego.
Watching them gradually grow and complete most of the roadmap, I found that many project parties' foolish decisions are often not made according to their own will, because everyone has their own interests.
Previously, I expressed concerns in the community about projects with valuations over 100 million, but in reality, some projects were forced to conduct high valuation financing.
Because old investors will require you to either issue tokens quickly, or complete the roadmap, or conduct financing at higher valuations to help us find a successor, or quickly refund my investment.
Therefore, today many projects that seem to have a good investor camp behind them are also facing daily inquiries from investors and being closely monitored by VCs, after all, most of the money is with you, and if you do poorly, it marks the beginning of my unemployment.
This has also led to projects with a valuation of 150 million needing to seek 300 million in financing; after 300 million, they must seek more well-known institutions for branding.
This Lego is also slowly building up in a false prosperity bubble, ultimately collapsing under high FDV token issuance.
Exit of investors.
In fact, many investors are no longer seeking to wait for exits after token issuance, but are more inclined to let projects conduct financing at higher valuations, so that after the valuation is pushed up, they can transfer their shares in advance.
Among them, the most classic should be the public chains that start with S. After the high valuation takeover by red X, the market once experienced FOMO, and many old investors stopped caring and just sold, sold, sold to the community or institutions that hadn't participated, with transfer contracts becoming increasingly rudimentary. Sometimes, just a quick greeting on WeChat, transferring U, and the transfer is considered effective.
If the amount is too large, it is split into dozens of parts and sold to KOLs or the community.
Thus, the subsequent situation also became apparent; the institutions that did not run away must continue to wait for the unlocking after a year of circulation, while those that ran away silently make a fortune, seeking the next project to build Lego with everyone.
I remember that the founder of Mobike once said that capital money is temporary and must eventually be returned. In the end, she did return most of the results, as if life is just a dream.
Return to calm.
Looking at it now, the entire industry is gradually returning to a healthy direction. Many first-tier exchanges are also unwilling to take on such high valuation projects, and the community is more accepting of low valuation or community-launched projects.
The periodic rotation will indeed change many things, including the way of playing. At least by the end of this year, there will be fewer situations involving this kind of betting, because it is no longer sustainable.
Recently, many peers have also joined the community's PVP segment. I think this kind of betting is actually more fun, as it is real-time and involves battling various dog farms.
This is far more interesting than institutions lifting each other up and racing to see who runs first. In the process, I also got to know many well-known bloggers and community experts.
I hope the above content can be helpful or inspiring to you. Thank you for reading.