Crypto VC funding surging again sounds like a rally, until you trace where the money actually lands
Despite a resurgence in crypto VC funding, the money is largely flowing into fintech and tokenized assets, not necessarily driving up token prices.Summary
Crypto VC funding is experiencing a rebound, exemplified by Dragonfly Capital's $650 million fundraise. However, this influx of capital doesn't automatically translate to a market rally. The funds are primarily being directed towards fintech applications and tokenized real-world assets, with a decreased focus on “native app tokens.” A key concern is the continuation of launch structures that prioritize manufactured scarcity and scheduled token unlocks, leading to predictable price drawdowns. Analysis by Binance Research and Keyrock reveals that these unlocks often result in significant price declines, as insiders capitalize on pre-determined exit windows. The article highlights that the current funding environment risks repeating the mistakes of the past, creating more dilution overhang and opportunities for front-running. Successful tokenomics, as demonstrated by projects like Backpack and Jupiter, emphasize larger initial floats, growth-triggered unlocks, and revenue-linked buybacks to create sustainable demand and reduce the impact of dilution. Investors are advised to carefully evaluate metrics like market cap to fully diluted valuation, insider holdings, and upcoming unlock schedules before investing.
(Source：CryptoSlate)