Analysis of the Logic Behind VC币

Recently, the cryptocurrency market has experienced a wave of project enthusiasm led by venture capital (VC). These projects quickly attract funding through high valuations and market hype, but over time, their appeal gradually weakens. Here are some key observations and analyses of the current VC coin market:

1. The rise and fall of VC projects can be understood through cases like Ethena, IO, and MSN. These projects initially attracted investment through high valuations and a strictly controlled whitelist mechanism, but later performed poorly, leading investors to turn to other types of projects.

2. The market is experiencing a bubble phenomenon, primarily due to an influx of capital without corresponding technological innovation. Many projects are assigned valuations that far exceed their actual value, making it difficult to meet market expectations.

3. The types of projects are diverse, including idealism-led projects, "puppet" projects relying on capital operations, and top team projects focused on long-term technological innovation. The latter, such as Zama and Fhenix, may have greater long-term development potential.

4. North American and Asian funds have differences in investment strategies. North American funds focus more on technology and long-term development, while Asian funds pay more attention to short-term market performance and liquidity.

5. Projects invested by certain well-known institutions, such as those supported by Paradigm, typically have better long-term development prospects. Investors can pay attention to such projects, but they also need to adjust their investment mindset and consider profiting from VC alongside the project parties.

6. Investors with a technical background and industry information channels are better able to identify the authenticity of projects and potential issues. Even if a project has certain problems, as long as the fundamentals are acceptable, it may still be worth considering.

7. The "Gold Miner Mine" theory reveals the lack of true value creation in the market, with most projects relying on the continuous influx of new users to sustain operations.

8. In the current market, VC itself has become the main "human mine". The real profit goes to those participants who can collaborate with project parties to gain benefits from VC.

9. Participating in activities such as airdrops and staking can be a low-cost, risk-controlled investment strategy. By diversifying funds and maintaining a long-term commitment, stable returns may be achieved.

10. Investors should be wary of projects that are highly valued but have low circulation, as these projects often face significant inflationary pressure. The quality of a project can be assessed by checking the token distribution through a blockchain explorer.

11. Ethereum is considered one of the ideal projects in the cryptocurrency field due to its technical rigor and high security. However, it is important to note that technical advantages do not directly equate to an increase in coin price.