johnnysays.eth

So Rolling Loud and Tomorrowland both used NFT technology as a value add to an existing successful business model. In these cases, a VIP pass. This is where web3 works. Where it doesn’t work is starting with an NFT sale and trying to create a business around that. Like Doodles.

Seeing alot of VC shade on the tl. Here’s what they’re really like👇 In the investing world, the VC is considered to be the degen. Their funds are at the highest end of the investor risk spectrum. Fees are typically the highest as well, and there’s usually a hefty performance fee component. Everything is a clout game for the VC. Number of successful exits matter, even if the terms aren’t ideal. They’ll ride the lore of a single big deal for their entire career, regardless if they were a bit player in it and made no money. They’re the ones looking for that 100x return. Often more. 1000x is possible in venture. They’re also fine losing 9 out of 10 times. The only thing that matters is an asymmetric payoff. The typical VC tactic in crypto is to push founders to create tokens with early unlocks for themselves. That’s where the liqudity is and provides the easiest way for them to make money.. They generally don’t care about sustainable tokenomics or even business models, just that price will sustain until they get their tokens in hand. Important to note that not every VC shares this same cash geab mentality. There are some good ones that work hard with founders, and truly care about a positivr outcome for all. But this sadly seems to be the exception, not the rule. You’d think some VC investments are head scratchers, as they invest bug into protocols often with no apparent business model or revenue stream. But know that there’s always a method to their madness. Much of it is akin to throwing rice at the wall and seeing what sticks. If they get their hands in enough pots, one will surely hit big. They chase founders with a strong track record, because winners generally keep winning. Reputation is everything. Most VCs will go from one extreme sentiment to the other, and sufffer the same fomo and depression as retail traders. They’re humans and not immune to enotional decision making. Their fund investors also pressure them to deploy capital during market peaks, and then ask for their money back when times are bad. FTX deploying billions of dollars into venture in 2021 certainly created pressure for other funds to chase deals. When it rains it pours in venture. And when the well runs dry, all goes dark. They tend to be real quiet about their losing bets while the amplify the wins. It’s very tough to even raise a tiny amount of cash now without a track record. But a couple years ago if you had a pulse and a pretty deck they’d throw money at you and hope for the best. I’ve met very few that actually care about the tech, or crypto in general. Many lack even elementary knowledge of crypto for instance but front like expert developers on social media and podcasts. They like to talk the talk. That is, they write and speak well, so they’re believable. That’s the value of a good education, and having the foresight to catch the latest trend before it’s front page news. They’re tech whisperers. To a shamelessly financially motivated VC, the thought is that if they’re early enough and on the hottest trend, the sustainability wont matter as much. They’ll typically have multiple opportunities to monetize through either the next funding round at a much higher valuation or through sales of the token. Exit liqudiity is their rule of thumb. However they can get it.

If I was a web3 founder I’d probably rage quit into whatever fud the vocal minority of psychotic incels come up with on a routine basis. It’s draining. Founders can only work so hard in a toxic environment. Most do care. They owe you nothing beyond what was specifically promised.

This was a fun scene when it was anons flipping jpegs and artists hustling for the come up. But it wasn’t good enough. You wanted to dox everybody and bring in the vc funds. “We’re gonna sell our jpegs to Blackrock”. Turns out they dgaf about good vibes and community like you do.

Hearing from multiple nft collection founders that they want to exit but there’s nobody acquiring these companies. Royalty revenues are non-existent and new mints simply aren’t selling. Vc funding in the space has evaporated. Young smart builders want to move on but feel trapped.

Stop calling it a rug when teams are actively building. Rug isn’t a function of collection floor price. You aren’t doing yourselves any favors when attacking founders. They’re just gonna get burnt out and underperform. Embrace product releases. The work that goes into it is real.