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![CobakOfficial Avatar](https://lunarcrush.com/gi/w:24/cr:twitter::980079455702953984.png) Cobak [@CobakOfficial](/creator/twitter/CobakOfficial) on x 74.9K followers
Created: 2025-06-20 09:12:14 UTC

How Do VCs Manage Risk During Token Lockups?

Most crypto token projects receive early-stage support from venture capital (VC) firms — including funding, technical help, and marketing. In return, VCs are typically allocated a percentage of the project’s tokens.

But here’s the catch:
📌 These tokens usually come with a cliff or lock-up period, meaning VCs can’t sell them immediately.

📉 During this period, they’re exposed to market risks — token prices can drop significantly.

💥 And when large VC allocations unlock, a mass sell-off can trigger major price crashes.

So… how do VCs protect themselves?

In this post, we’ll break down:
✅ Hedging strategies used during lock-up periods
✅ Exit strategies for realizing profits after unlock
✅ How VCs maximize returns while managing risk

📎 [Full breakdown in the link]

Let’s dive in 👇



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**Related Topics**
[vc firms](/topic/vc-firms)
[token](/topic/token)
[vcs](/topic/vcs)
[cobak](/topic/cobak)

[Post Link](https://x.com/CobakOfficial/status/1935989053784310010)