1confirmation founder: 4 out of the top 10 tokens by market value have followed the "Crypto VC" script
1confirmation founder Nick Tomaino posted on the X platform, stating that in the past decade, crypto teams have raised a large amount of venture capital. They then carried out large-scale token lock-ups, small fluctuations and aggressive marketing to manipulate prices and FDV to attract retail investors. Undoubtedly, there are other insider games such as paid market makers creating liquidity or simply engaging in deliberate token insider bidding. But the basic "Crypto VC" script is:
- Raise more than 100 million dollars in funds and hype up this transaction with an exciting narrative;
- Launch a blockchain;
- Distribute 50%+ tokens to insiders;
- Create over 100 million total token supply;
- Unlock 20% or less of the total supply when the token goes live;
- Carry out large-scale paid marketing campaigns.
Regardless of how one evaluates this script, it has proven very effective. Four out of the top ten tokens by market cap have followed this script and created over $250 billion worth of value. Looking forward, the biggest question is whether this model will continue to be effective? However, based on recent Memecoin pump-and-dump schemes, it seems there's still a long way to go.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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