Connect with us

Hi, what are you looking for?

Crypto
Crypto
#image_title

Exclusive

Crypto’s Biggest Secret: How VC Funds Manipulate Token Launches

While retail traders chase 10x gains, venture capital (VC) funds are quietly manipulating token launches to extract billions. Here’s how crypto’s biggest insiders exploit public investors—and how you can avoid becoming exit liquidity.

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

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.

author avatar
Satpal S
Satpal is an Editor and Author at 4C Media Co, specializing in all stories and news related to crypto and finance.
Advertisement

You May Also Like

Cryptocurrency

This week’s top crypto stories highlight Elon Musk’s pro-Bitcoin political agenda, Ripple’s RLUSD stablecoin hitting a $500M market cap, Metaplanet’s plan to acquire a...

Cryptocurrency

Bitcoin Depot's data breach affected 27,000 consumers as their names and IDs were leaked. Disclosure was delayed for a year due to a federal...

Exclusive

As regulatory pressure mounts and financial markets tighten, Circle’s USDC—often seen as the "safer" stablecoin—faces growing risks that could trigger the next major depeg....

Exclusive

A huge section of scams comes with fake AI systems these days that drain your crypto wallets. These scams use a fake “ChatGPT-powered” trading...

polkadot
Polkadot (DOT) $ 4.23 5.18%
bitcoin
Bitcoin (BTC) $ 119,332.00 1.55%
ethereum
Ethereum (ETH) $ 3,381.10 9.85%
cardano
Cardano (ADA) $ 0.777759 5.43%
xrp
XRP (XRP) $ 3.08 6.10%
stellar
Stellar (XLM) $ 0.463394 3.51%
litecoin
Litecoin (LTC) $ 99.06 3.35%