Founder of 1confirmation: 4 out of the top ten tokens by market capitalization follow the "crypto VC" playbook

According to a report from 深潮 TechFlow on March 1, Nick Tomaino, founder of 1confirmation, stated on the X platform that over the past decade, crypto teams have raised substantial venture capital, followed by large-scale token locking, minimal floating, and vigorous marketing to manipulate prices and FDV to attract retail investors. There are undoubtedly other insider games at play, such as paying market makers to create liquidity or simply engaging in insider bidding for tokens, but the most fundamental "crypto VC" script is as follows:

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  Raise over 100 million USD and hype the deal through compelling narratives;

  
  


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  Launch the blockchain;

  
  


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  Allocate over 50% of tokens to insiders;

  
  


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  Create a total supply of over 100 million tokens;

  
  


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  Unlock 20% or less of the total supply when the token goes live;

  
  


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  Execute large-scale paid marketing campaigns.

  
  

No matter how one evaluates this script, the fact is it has been highly effective, with 4 of the top 10 tokens by market capitalization executing this script and creating over 250 billion USD in value. Looking ahead, the biggest question is whether this model will continue to be effective. However, based on the recent hype and sell-off of Memecoins, it seems there is still a long way to go.