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  3. /Venture Capital (Crypto)
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cryptocurrency

Venture Capital (Crypto)

Investment firms that fund early-stage crypto projects in exchange for tokens at discounted prices with vesting schedules.

Definition

Investment firms that fund early-stage crypto projects in exchange for tokens at discounted prices with vesting schedules. a16z, Paradigm, and Polychain Capital are major crypto VCs. There's ongoing tension between VC-backed projects and fair launches because VCs often sell their discounted tokens into retail demand.

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Related Terms

Private Sale

An early funding round where tokens are sold to select investors (usually VCs and angels) at a discount before the public launch.

Vesting

A schedule that gradually releases tokens to team members or investors over time.

Tokenomics

The economic design of a token including supply, distribution, utility, and incentives.

Address Poisoning

A scam where attackers send tiny transactions from addresses that look similar to ones you've interacted with, hoping you'll accidentally copy the wrong address from your transaction history.

AI x Crypto

The intersection of artificial intelligence and blockchain technology.

Airdrop

A marketing strategy where crypto projects distribute free tokens to wallet addresses.

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