As this cycle has continued to progress we have seen the sentiment towards VCs being involved in Low Float / High FDV launches continue to sour as the price action of these tokens has been decimated when unlocks have continued to suppress the price further and further. The average crypto participant feels like they are “exit liquidity” and refuses to touch these tokens as they can’t get in “early” no matter the valuation of the token.
To add to this, most of the tokens in this industry are overvalued. It is hard to make a coherent argument of how you would value them anyway, making the situation even more difficult.
The result has been that people have been refusing to buy new launches and started buying memecoins instead.
What does this risk? VCs are less inclined to reward builders who don’t see their efforts being valued by the market. Thus, leading to fewer people wanting to build in the industry. It’s a negative spiral which I hope we get out of soon as we have reached a stage where the people involved in this industry are the ones that are the most cynical about it.
We have forgotten how to dream.
Considering this sentiment, there lies a few opportunities that could shift sentiment drastically if the market doesn’t shit the bed. Let’s take a look at those.