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Venture Capitalists’ Short-Term Strategies Threaten Crypto’s Long-Term Viability
Venture Capitalists’ Short-Term Strategies Threaten Crypto’s Long-Term Viability
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The crypto market faces growing scrutiny as venture capitalists prioritize quick profits over sustainable growth. David Phelps of JokerRace highlights the troubling pattern: VCs inject capital at inflated valuations, mint tokens, then artificially prop up prices—creating a house of cards rather than organic ecosystems.
This year’s graveyard of failed tokens underscores the systemic risk. Unlike traditional startups that transition from VC funding to revenue generation, crypto projects often collapse under the weight of their own speculative designs. The industry’s future hinges on shifting from financial engineering to genuine utility.
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