> Tokens and other crypto investments have been attractive to VCs because there was a steadily rising level of interest and a regular cycle of hype booms that make for great exit opportunities. (See the timing of Coinbase IPO.)
It was not really an IPO, its was actually a direct listing and it was planned when BTC price action was breaking another all time high. Upon listing day, it is the same cycle of the VCs selling at the top with the retail investors bag holding $375 - $425 which I continuously warned against buying into the hype. [0] It has never recovered over those prices and is sitting at around $225 - $228.
When everyone and their goldfishes and the media are hyping everything at the same time during the build up to an angel or VC funded project they will unload a large amount of their investment onto the retail trader at expensive prices. You lose nothing by ignoring the hype.
This is how the VCs always keep winning.