VC coins and memes are not mutually exclusive; participate in both but don't become attached to either.
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VC coins and memes are not mutually exclusive; participate in both but don't become attached to either.
Participate in both, but don't develop emotional attachment to any token.
Navigating Web3 tides with focused insightsAuthor: hitesh.eth
Translation: TechFlow
I haven't conducted in-depth research on either side, so I'll offer a neutral perspective based on my observations and available data.
There are many misconceptions about these two types of tokens that need clarification. Don't blindly believe the narratives pushed by a few influencers.
Here are some of my insights.
VC Tokens: Long-Term Investments with Solid Foundations
The definition of VC tokens is simple: more than 51% of their supply is allocated to teams and investors. Sounds fair, right?
Take a closer look at the tokenomics of most infrastructure projects—such as $EIGEN, $SUI, $APT, $AVAIL, $ZK, $SEI, and others—and you’ll find that much of the supply is dedicated to community and ecosystem growth.
This is crucial. For infrastructure projects, ecosystem health drives all development. dApps migrate to new chains when incentives are attractive enough. Currently, established players like Aave, Uniswap, and Curve dominate the market. The primary challenge for new ecosystems is attracting these major protocols while simultaneously nurturing innovation and incentivizing developers. Incentives are key to driving this process.
We’re seeing projects like #SUI and #APTOS skillfully leveraging their ecosystem resources. Their fundamentals are gradually showing signs of growth. This growth naturally generates market enthusiasm, as funds allocated for ecosystem development are also used to incentivize marketers and content creators, boosting project visibility.
This creates a feedback loop. Top-down incentives drive the entire marketing pipeline, while retail investors follow the momentum from below.
Venture capital unlocks will proceed as scheduled, but don’t misunderstand VC strategies. They’re involved for long-term gains. VCs, like retail investors, seek high returns. When 30% of the supply is focused on long-term growth, they won’t exit just because they’ve achieved 10x.
They know how to shift market attention and create positive feedback loops. Take $SUI as an example. A few months ago, retail sentiment was disappointed, but after price increases fueled by grants and announcements, $SUI has regained popularity.
What retail investors need is assurance, security, and lower risk. Tokens backed by venture capital—especially those with strong commitments to ecosystem growth and steadily improving on-chain metrics—can meet these needs.
Memecoins: Snipers and Liquidity Traps in Short-Term Hype
Memecoins are typically fully released during the Token Generation Event (TGE). But can everyone fairly access these hot meme tokens?
No. Meme token launches are often dominated by snipers. They quickly scoop up cheap tokens, leaving you to become their "bagholder."
Then, a community begins to form, the price chart rises, and influencers buy large amounts from the open market. The rules may be the same for everyone, but conviction differs. You might exit when prices double, while influencers hold until 10x, building compelling narratives around their holdings. They often collaborate secretly with venture capitalists.
Their goal is to make retail investors believe so deeply that they stop thinking about taking profits. Only later, when liquidity is quietly pulled from decentralized exchanges and big players cash out, do retail holders realize what happened. That’s when you understand: memecoins aren’t so different from VC-backed tokens after all.
Strategy: Participate in Both, But Stay Detached
Retail investors love chasing trends, and memecoins are exactly that. If you want to trade them, do so at your own pace—not because an influencer told you to. At the same time, don’t completely abandon VC-backed tokens. Market narratives can shift rapidly; your funds could get stuck in a memecoin while VC-supported tokens surge.
The key is vigilance. Engage with both, but avoid emotional attachment to any single token. Most tokens will eventually go to zero. Be ready to exit at the right moment—don’t regret not locking in profits in time.
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