Crypto VC Model Lets Firms Like a16z Dump Tokens on Retail
Molly White · SBF's Last Stand — With Molly White · Oct 19, 2023 · at 48:42
Crypto researcher Molly White discusses Andreessen Horowitz's aggressive crypto evangelism and how venture capital token economics operate at the expense of retail buyers.
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“Well, I mean, I think sadly Andreessen Horowitz probably came out of this financially kind of okay because with the, well, the crypto venture capital model is very slanted towards the venture capitalists where they can invest money in a firm. They receive these tokens before anyone else gets access to them. The firm launches their token and then there's this huge spike in price because people get really excited about it, especially if Andreessen Horowitz has been promoting it or, you know, some other high profile person has been promoting it. And then Andreessen Horowitz or whichever venture capital firm can immediately sell those tokens and make massive returns effectively off of the backs of these retail customers who then lose money because the token goes down in price.”
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