Binance has also issued a report specifically exploring the "culprit" behind the non-reciprocal bull market - VC tokens, and it is quite fair-minded. First and foremost, let's focus on the key point: the entire market will unlock $155 billion by 2030 based on current market capitalization, which is an incredibly terrifying dump. The main reason for this is the extremely high opening FDV and the extremely low initial circulation, and at least according to the report issued by Binance, the reason is that VCs have pushed valuations to absurd prices before TGE. A few days ago, I also posted a long tweet discussing this topic and potential countermeasures. Those interested can take a look. Actually, I feel that the market is currently experiencing a very distorted and false prosperity. On one hand, the public is抵制VC tokens, and on the other hand, a large number of VC friends I've come into contact with are constantly complaining that they can't make money. Both project parties and investors are suffering losses due to being locked up (I've even seen sales at a 10% discount) and trying to sell tokens OTC to find someone to take over.
Let's go over the logic again: project parties need financing - VCs push up valuations - TGE opens at its peak - retail investors get slashed - VCs sell tokens OTC at a discount. Doesn't it seem magical? After going through so much trouble to create a project with a valuation of tens of billions of dollars, it seems no one in the entire industry chain can truly benefit from it, and everyone is busy "cutting losses"? And as the "culprits" of VC tokens, they're being criticized and scolded. At this point, everyone asks, "What are you guys trying to achieve?"
I myself have participated in several "VC token" projects, including some that got seed funding at very low prices. You ask me if I'm happy? Of course, I'm happy to see my assets on paper rising round after round, but it's useless if I can't sell them. Finally, after enduring the hardship for several years, it's not bad to be able to keep 10% of the assets. So I also ask, "What are you guys trying to achieve?"
If VCs had not "pampered" entrepreneurs by accepting such high valuations in the beginning, if TGE hadn't been so expensive and followed an upward curve, they could have unlocked more tokens early anyway. After all, ultimately, 10% would be left regardless. What's the difference between peaking at the opening and enduring hardship for three years?
As both a victim (getting slashed in the secondary market) and a beneficiary (participating in the primary market) of VC tokens, I have also been thinking about this issue frequently recently. But gradually, I realized that this is a dead end, at least for now. The reasons for this dead end are:
The prosperity of the Web3 capital market development is greatly mismatched with the scarcity of quality projects.
The prosperity of the Web3 capital market development is greatly mismatched with its ability to truly create value.
Let's talk about the first point. I tweeted about this just a few days ago. In just two months, more than 1 million tokens have been issued. Due to the extremely low threshold for asset issuance in Web3, the threshold for creating projects and issuing tokens is also very low. Most of them will eventually fail. In the short term, because of the economic downturn in traditional industries and the significant "wealth creation effect" and exit speed of Web3, a lot of money is pouring in. There's a lot of money and a lot of projects, but very few good ones. Therefore, all the money will concentrate on a few projects, bidding for shares at high prices, leading to rising prices. We can see that the typical portrait of this round of projects that can truly obtain super-financing levels of tens of millions of dollars is that they are led by executives from major companies and professors from prestigious universities. With the support of top-tier VCs, precisely such "heavenly" projects "must" be listed on exchanges, ultimately leading to this situation. Many "naive and innocent" entrepreneurs who have just entered Web3 hoping to make a quick buck are deceived by appearances. After seeing too many financing news, they really believe that starting a business in the crypto world is just about three programmers making a demo in three months and easily raising $3 million. Good projects have high valuations, and a lot of bad projects follow suit.
Now let's talk about the second point. No one is talking about Mass Adoption anymore in this round. The term "value coin" has also become a "joke." Oh? Mr. Kong Yiji, you're here again talking about value investing? As a revolutionary technology, blockchain has always been expected to change the old world. In the previous bull market, everyone was looking forward to a world where everything could be assetized. In the last bull market, everyone was looking forward to a world of fair, trustworthy, and tamper-proof rights confirmation. But in this bull market, what kind of new world are you expecting? What I see is a world where everyone wants to launch their own blockchain but can't explain why they must do so. The lack of innovation and external value has created a PVP world where everyone is competing to see who can run faster, and once there is no positive value, it becomes a race to see who can run faster. Even teams that genuinely want to work hard and encounter irreversible declines in token prices will only think about starting a new project. After all, the threshold for issuing tokens and getting listed isn't that high. In the traditional world, Apple, Google, and Amazon cherish their hard-won listing opportunities and have no confidence in being able to continuously launch several projects on Nasdaq. Therefore, even during the darkest moments of downturns, they persevere and ultimately create businesses that truly change the world and are reflected in their stock prices.
Ultimately, multiple factors have contributed to this awkward dead end. Who will resolve it? Who is the resolver? We don't know. It seems that VCs are the culprits behind the non-reciprocal bull market, but VCs are also just one of the many players in this dead end. I am, and you are too#5月市场关键事件 #内容挖矿 #山寨币热点 $BTC $ETH $SOL
