How High FDV Dismantles Community Consensus
In March 2025, a leaked internal memo from a crypto VC firm on the JuCoin On-Chain Data Platform exposed crypto’s most brutal slaughter rule: 89% of VC coins launched in the past two years had less than 10% circulating supply, with an average FDV of $4.3 billion. This reveals how liquidity from retail investors feeds VC lockup vaults.
Myshell’s crash became a textbook case. When its SHELL token launched on Binance, on-chain data foreshadowed its doom: 78% of the 30% “community incentives” were reclaimed by market makers, addresses holding the token plunged 50% on TGE day, and the $1.64 peak was a trap. Within 13 hours, its circulating market cap evaporated from $420 million to $100 million, leaving retail investors as sole bagholders.”This isn’t token issuance—it’s liquidity suicide,” said BlockBooster researcher Kevin, who traced a whale dumping $2.7M SHELL pre-Binance listing, sourced from the “community pool.” Worse, Myshell’s AI narrative collapsed after its core code was exposed as plagiarized open-source projects, turning VC “long-termism” into dark comedy.
Power Gambit: Kaito’s NFT Scheme and Governance Deception
While Myshell bled out, Kaito crafted a subtler exploitation model. Beneath its “decentralized governance” veneer lies a VC-whale pact: a single Genesis NFT grants 45,980 voting rights (equivalent to 3,935 KAITO), while NFT floor prices crashed 73% from 11 ETH to 2.5 ETH.JuCoin Governance Analytics exposed Kaito’s fangs: the top 50 NFT holders control 62% of voting power, and “community proposals” are VC-scripted theater. When a member proposed reducing VC unlocks, their staked KAITO was auto-seized into the “protocol treasury.” An anonymous developer warned: “A 5% stealth tax flows to VC addresses with every trade—Mindshare is just a bloodsucking license.”
When Long-Termism Becomes Capital’s Shroud
VC coins’ death spiral reflects crypto capitalism’s systemic rot. As BTC becomes a Wall Street toy via ETFs and Memecoins shatter four-year cycles with three-day manias, “value investing” morphs into: VCs creating liquidity deserts via lockups, airdrops bribing communities with crumbs, and CEXs colluding to pump开盘价 while liquidating longs via perpetual funding rates.On-chain autopsies reveal:Myshell’s top 10 addresses increased holdings from 38% to 67% post-listing94% of Kaito’s sKAITO stakers suffered losses after first unlockVC coins see 92% trading volume drop within 90 days, surpassing 2018 ICO carnage”The real cancer is VC pricing tyranny,” confessed an anonymous VC partner. “Slashing FDV by 80% could boost retail returns 400%—but no one dares anger the VC gods.”
Colin Winston
