[GUEST ACCESS MODE: Data is scrambled or limited to provide examples. Make requests using your API key to unlock full data. Check https://lunarcrush.ai/auth for authentication information.]  readthisplease.bob.ink.lvl🆙 ⛺ |HUDL 🍊,💊 [@readthisplease6](/creator/twitter/readthisplease6) on x 1019 followers Created: 2025-07-25 20:29:49 UTC Is VC backing a project a good thing or a bad thing? Why VC Backing Can Be a Good Thing: Credibility & Trust Well-known VCs like a16z, Paradigm, or Sequoia backing a project can boost its reputation. People assume VCs did due diligence, so it attracts more retail investors. Funding = Faster Growth Projects with VC money can build faster, market harder, and hire top talent. Partnerships & Access VCs often have networks and connections that open doors for strategic partnerships, exchange listings, or media attention. Long-Term Vision Some VCs align with long-term project goals and support during bear markets or tough times. Why VC Backing Can Be a Red Flag Unfair Tokenomics VCs often get tokens at very cheap seed/early prices and retail becomes exit liquidity when they dump at unlocks. Dumping Risk Most of the time, once tokens unlock, VCs dump hard on the market causing price crashes. (You’ve probably seen this with many projects.) Misaligned Incentives VCs want profits. They may pressure the team to focus on price/pump over actual product or community. Centralization Risk Too much VC involvement can lead to centralization of decision-making and governance — the opposite of what crypto should be. So… Is it Good or Bad? It’s neutral by default. It depends on: •Which VC is backing it (are they known dumpers or long-term players?) •Vesting schedule (do they have long locks or quick unlocks?) •Valuation (were tokens overpriced in the private round?) •Community involvement (is it VC-heavy or grassroots?) No one knows the teams intention till TGE, just believe in a project and have a conviction. @NetworkNoya is not backed by any VC but we have projects like @union_build, @infinex and more that are backed by VCs. I don’t usually consider VC backed when interacting or investing in a project because TGE is all that matters and a project with great utility after TGE will always win me over.  XX engagements  **Related Topics** [money](/topic/money) [acquisition](/topic/acquisition) [andreessen horowitz](/topic/andreessen-horowitz) [vcs](/topic/vcs) [Post Link](https://x.com/readthisplease6/status/1948843150639816716)
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readthisplease.bob.ink.lvl🆙 ⛺ |HUDL 🍊,💊 @readthisplease6 on x 1019 followers
Created: 2025-07-25 20:29:49 UTC
Is VC backing a project a good thing or a bad thing?
Why VC Backing Can Be a Good Thing:
Credibility & Trust Well-known VCs like a16z, Paradigm, or Sequoia backing a project can boost its reputation. People assume VCs did due diligence, so it attracts more retail investors.
Funding = Faster Growth Projects with VC money can build faster, market harder, and hire top talent.
Partnerships & Access VCs often have networks and connections that open doors for strategic partnerships, exchange listings, or media attention.
Long-Term Vision Some VCs align with long-term project goals and support during bear markets or tough times.
Why VC Backing Can Be a Red Flag
Unfair Tokenomics VCs often get tokens at very cheap seed/early prices and retail becomes exit liquidity when they dump at unlocks.
Dumping Risk Most of the time, once tokens unlock, VCs dump hard on the market causing price crashes. (You’ve probably seen this with many projects.)
Misaligned Incentives VCs want profits. They may pressure the team to focus on price/pump over actual product or community.
Centralization Risk Too much VC involvement can lead to centralization of decision-making and governance — the opposite of what crypto should be.
So… Is it Good or Bad?
It’s neutral by default. It depends on: •Which VC is backing it (are they known dumpers or long-term players?) •Vesting schedule (do they have long locks or quick unlocks?) •Valuation (were tokens overpriced in the private round?) •Community involvement (is it VC-heavy or grassroots?)
No one knows the teams intention till TGE, just believe in a project and have a conviction. @NetworkNoya is not backed by any VC but we have projects like @union_build, @infinex and more that are backed by VCs. I don’t usually consider VC backed when interacting or investing in a project because TGE is all that matters and a project with great utility after TGE will always win me over.
XX engagements
Related Topics money acquisition andreessen horowitz vcs