THE GREAT CRYPTO VC BUBBLE: WHY EVERY NEW TOKEN TRENDS TO ZERO (PART 1)

Summary from the TLDR Crypto newsletter

The crypto VC bubble, which began during the 2021 bull market, inflated token valuations by channeling excessive VC capital into alt projects, ultimately setting the stage for widespread underperformance. Following the market crashes triggered by events like Luna, Three Arrows Capital, and FTX, many VCs shifted from long-term strategic investments to short-term exit strategies. This misalignment of incentives is prompting founders and communities to pivot toward alternative funding models, such as community-driven fundraising and long-term liquid funds, casting doubt on the future viability of many VC-backed projects.