Venture Capital in Blockchains

This will be a good testing ground to explore how VC backed chains will function in the time to come, especially if we have a crypto autumn or winter… As you probably know already VCs get discounted crypto as early adopters however they typically have lockdown periods/”vesting period” which prevents them from selling everything they bought.

These vesting periods are typically in order of 6 months, year or two years… Depends on how well they haggled their position. Now the interesting experiment will begin. If the FED raises the interest rates (as we know they will) venture capitalists will have to reduce their most risky position i.e. crypto. This is why the entire crypto and stock market is tanking to some extent. This also means that VC backed chains will see bigger selloffs when their vesting periods end and prices of those coins will take a bigger hit.

What do you make of this? Personally I am looking at SOL since it is heavily backed by VCs and there are a dozen of YT arguing how VC capital is best and to follow the money.

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4 thoughts on “Venture Capital in Blockchains”

  1. Older projects with good fundamentals that have backing and years more research and development than some of these newer projects.

    Following Grayscale and their investments. I’ll mostly be betting on Cardano and Horizen.

  2. “Follow the money” is another way of saying “provide exit liquidity for VCs.” Their goal is to make fiat profits by dumping on retail.

  3. You somehow manage to single out SOL yet nearly every L1 is heavily VC backed, some even more so than SOL – This sub and its SOL bashing is actually cringe and pathetic

  4. My non-VC crypto investments have been greatly outperforming my VC backed cryptos over the last 6 months.

    I don’t know if that’s circumstantial or indicates a shift in the market but I’m not complaining.


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