If you’ve opened this article, you're likely interested in the topic of coins invested in by venture funds. I would like to ask you not to treat the ideas and thoughts published here as investment advice.

All risks associated with buying/selling assets are the responsibility of the reader.

Disclaimer: The author refers to "VC coins" in the context of coins under analysis having a small number of tokens in circulation with expected series of unlocks that could dilute its valuation.

Low float / High FDV, to be precise.

Context

Since the beginning of this year, every average crypto world inhabitant understood the importance of this year, as the season of growth particularly energizes exchanges ready to conduct 3-4 listings a week. In fact, everything was fine until the market began to correct itself.

I would divide the stage of greed and disappointment into 2 time frames:

1. Greed. November 2023 — March 2024.
2. Disappointment. March 2024 — July 2024 (where we are now, with the same sentiments).

Greed.

The period of greed can be characterized as constant capital flow from one category to another, where absolutely everything was shooting up, with several examples of pump & dump below:

$ARB l L2

$BLUR l NFT

$HIGHER l Social-Fi

$AGI l AI + Game-fi

The overall positivity was underpinned by $BTC, which already received its ETF in January and demonstrated excellent performance, soaring from 40k to 70k over a few months. Altcoins were thriving, and new launches were actively supported by speculators and investors, who scooped up every coin.

What the market lacked during this period was liquidity. There was so little money that as one ecosystem grew, another showed no signs of life, and as soon as the first was pumped to its limit, liquidity was redirected to the next, and so on in a cycle.

ETH —> Sol —> Avax or Sui

If we're talking in terms of categories, the selection wasn't large:

L2 —> AI —> BTC-fi (and BRC-20) —> Game-fi —> Meme

I can't say that it was cyclical, but I can note that each category definitely showed growth over these six months.

I didn't see a single tweet related to FDV hate, for example, $TIA. It was a quiet listing on Binance with a market capitalization of $200 million and an FDV of $2 billion.