Analyzing the Logic Behind VC Coin

Recently, the cryptocurrency market has seen a number of projects led by large venture capital (VC), especially in the Staking and CeDeFi sectors. The development trajectories of these projects can be analyzed through cases such as Ethena, IO, and MSN.

Ethena showed impressive early performance through high valuations and a strict whitelist mechanism, but the token price subsequently dropped significantly. IO attracted attention after announcing funding, but immature technology led to security vulnerabilities. MSN, on the other hand, attracted investment through extensive promotion but quickly lost momentum after listing.

Some relatively successful VC projects like EtherFi, Bouncebit, and Eigenlayer also exist, but there is a serious homogenization across them. These projects often determine trading platforms and exit plans early on, with the technical aspects mostly outsourced, resulting in varying quality.

The current market bubble is evident, stemming from the successful experiences of the previous round of investments that led to a large influx of capital. VC institutions are under time pressure and have to invest funds into the market within a limited time, resulting in some projects being overvalued and difficult to match with actual performance.

There are various types of startup teams in the market: idealists, "puppet" founders, and teams that exist purely for profit. At the same time, there are teams composed of top scientists, such as Zama and Fhenix, that focus on long-term technological innovation.

North American and Asian funds have differences in investment philosophy. North American funds are more willing to support long-term technology projects, while Asian funds focus more on short-term market performance.

For retail investors, it is recommended to pay attention to excellent projects, such as those invested by Paradigm, which usually have long-term development potential. At the same time, it is also necessary to adjust investment thinking and consider cooperating with project parties to profit from VC.

Identifying the authenticity of a project requires certain technical skills and information channels. Even if a project has potential issues, as long as it doesn't have a bad reputation and its fundamentals are acceptable, participation can still be considered.

The "gold miner mine" theory reveals the lack of true value creation in the market, with most projects relying on new users' consumption. In the current market, VC itself has become the main "human mine".

Farming, as a low-cost and controllable risk strategy, can generate stable returns through airdrops and staking. However, one must be cautious of projects with high valuations and low liquidity, and can assess risks by checking the token distribution via blockchain explorers.

Finally, Ethereum, as a technically rigorous and highly secure project, is suitable as an ideal project in the cryptocurrency field, but it should be noted that there is no direct correlation between technical advantages and coin prices.