Published 29 Oct by SellTheHype

Dying (dead) crowdsales & crooked VCs

I see that this theme is picking up again. Therefore, I want to address it once more.

A few years ago, there was no VCs in the crypto space. That is why projects had to rely on the crowdsales. Now, with the market maturation, the situation has changed. Yet, retail investors, who are cut off the private deals, complain about VCs stealing their right to invest early. Let’s look into this situation from an ICO perspective.


— Multicoin Capital: “The best way to capture alpha as an investor is to create it”. Good VCs help their projects to succeed. They invest millions in the project. They have to get good price and liquidity to get them back. Vesting. 
— VCs are influential. They can get you listings, team members, clients, partnerships and consult you.
— It is easy to stay compliant having only a few investors.

ICO Crowd:

— Mainly flippers. Don’t give a damn about your project after a week after the ICO.
— Don’t have a skin in the game. $500 is easy to sell even on DEX.
— Don’t provide any value. They are not customers. Not ready even to do draw a picture for a project. 
— Forge KYC documents.
— Create secret pools, which can get an ICO into troubles.
— Complain about greed, but, in fact, it is they, who suffer from it.

Don’t forget, that at least half of these “Crypto VCs” are formed by successful yesterday’s crowdsale participants. They are just a wealthier reflection of the crowd.


If I was an ICO with no product, I would choose to fund from VCs. They help.

If I’m a project, which has a product and needs to create a distributed network supporting it, I would do a crowdsale (like NuCypher). Welcome to the new era.

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