VC-Backed Crypto Projects Trading Below Initial Valuations
According to CryptoRank, several high-profile VC-backed coin projects launched this year are now trading far below their initial venture capital valuations.
This shift highlights the risks and realities investors face in an increasingly speculative digital asset landscape.
Marketcaps Versus VC Valuations
Venture capital often drives early excitement for blockchain projects, assigning high valuations based on potential rather than current performance. Take Humanity Protocol as an example. The project raised funds with a first-round valuation of $1 billion, but its current market capitalization sits at $285 million. Similarly, Fuel Network started with a $1 billion valuation and now has a market cap of $11…
