Analysis of the Logic Behind VC Coin

Recently, the cryptocurrency market has seen a wave of project enthusiasm led by venture capital firms, which quickly attract funds through high valuations and market hype. However, over time, the appeal of such projects has gradually diminished, and investors are beginning to turn their attention to other areas.

The current wave of financing has led to a bubble in the market, making it difficult for many high-valuation projects to meet expectations. A large influx of capital has further exacerbated the chaotic situation. In this environment, different types of project teams perform variably:

1. Idealists find it difficult to sustain operations.

2. Some projects rely entirely on capital operations.

3. Top technology teams like Zama and Fhenix focus on long-term innovation and are expected to go further.

North American funds focus more on technology and sentiment, while Asian funds emphasize market effectiveness. However, Asian projects find it more difficult to secure long-term funding compared to North American projects.

Some high-quality projects invested in by top institutions like Paradigm have long-term development potential. In the current market environment, retail investors need to consider the perspective of the project side and look for opportunities to profit from VC.

Having technical capabilities and information channels helps to identify the authenticity of projects. Even in projects with potential issues, their acceptability can be judged based on fundamentals.

The "mining theory" reveals that there is no real "gold mine" in the market; projects mainly rely on the consumption of new users, and most transactions are worthless cycles. The "human mining" in the current market is actually VC itself, and the real profit goes to participants who profit alongside the project parties from VC.

The毛 strategy has low costs and controllable risks. By diversifying investments through airdrops and staking, one can achieve stable returns, which is suitable for long-term commitment. However, it is necessary to be cautious of high valuation and low liquidity projects, as these projects face significant inflationary pressure. You can identify quality projects by checking the token distribution through a blockchain explorer.

Ethereum is regarded as an ideal project in the cryptocurrency space due to its rigorous technology and high security. However, it is important to note that there is no direct correlation between the level of technology and the coin price.