The VC Token Launch Scam (Step by Step)
1. The Private Round Heist
During early-stage private funding rounds, VCs buy tokens at dirt-cheap prices—$0.01 to $0.10.
- They demand cliffs and vesting periods to pretend they won’t dump early.
- Meanwhile, retail investors pay over $1.00 during the public launch—a 10x to 100x markup.
2. The Fake Hype Machine
- Crypto influencers get paid to hype “The Next Solana.”
- Exchanges like Binance reportedly charge $2M+ to list tokens.
- Projects inflate Total Value Locked (TVL) with bots and fake dApp activity.
3. The Controlled Dump
- VCs start slowly dumping into retail-driven buying pressure.
- Team wallets sell under cover of “developer grants” and “ecosystem incentives.”
- Within months, prices crash 80% or more—retail holds the worthless bag.
3 Most Exploitative VC Tactics
1. The Vesting Illusion Scam
Projects claim: “VCs locked for 2 years!”
Reality: Fine print allows early release clauses during peak market conditions.
2. The Staking Trap
- Retail is baited with high APY staking rewards.
- Meanwhile, insiders quietly exit their unlocked tokens for real gains.
3. The Partnership Pump
- Before a token unlock, expect a slew of useless partnerships.
- Announcements like “partnering with a no-name game studio” are used to pump price before the dump.
How to Spot Rigged Launches
Over 50% of supply held by VCs and insiders
Tokenomics favor founders and early investors
AMA sessions dodge tough questions
Tokens listed before real product is ready
How to Avoid Being the Victim
Wait 6–12 months post-launch to avoid early VC dumps
Review vesting schedules on Messari or CoinMarketCap
Choose fair-launch or community-led projects with no VC backing
Follow smart money—but not blindly
The Ugly Truth
Most venture capitalists care about one thing: flipping tokens to retail at the highest markup possible.
They don’t believe in the tech. They believe in exit liquidity.
Don’t let hype blind you. Crypto rewards patience, not panic.
