The Chopping Block: VC vs. Liquid Funds, Friend.Tech’s Decline, Crypto Startup Exits - Ep. 704

Sep 13, 2024

Join Jason Choi, co-founder of the crypto startup Tangent, as he dives into the current ups and downs of the crypto landscape. The discussion hits on Friend.Tech's dramatic 96% token crash and the ethical challenges of early token launches, prompting debates about 'rug pulls.' They also tackle how airdrop farming skews user metrics, inflating perceived success. With the booming venture capital scene, they question if VCs add real value to crypto projects or just inflate valuations. Get ready for a candid look at the chaotic world of cryptocurrency!

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ANECDOTE

Friend.tech's Rise and Fall

Friend.tech's token dropped 96% from its all-time high, now trading at a significantly lower valuation.
The team burned its admin keys, leading to accusations of an exit scam, despite not selling any tokens.

INSIGHT

Early Token Launch Risks

Launching tokens early can create misaligned incentives for founders.
Friend.tech's monetization through fees, while seemingly decentralized, raised concerns.

ADVICE

Exiting Crypto Projects

Founders should have a clear plan for winding down crypto projects.
The lack of established norms makes exiting difficult, especially with launched tokens.

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Welcome to The Chopping Block – where crypto insiders Haseeb Qureshi, Tom Schmidt, Tarun Chitra, and Robert Leshner chop it up about the latest news in crypto. This week the squad is joined by special guest Jason Choi, co-founder of Tangent. In this episode the crew tackles the overvaluation of crypto projects by VCs, Friend.Tech’s 96% token crash, and the ethics of early token launches They also explore how airdrop farming skews user metrics, the volatility of memecoins, and whether VCs are extracting more value from crypto than they contribute. Tune in for insights into the ever-evolving crypto landscape!

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Pandora, Castbox, Google Podcasts, TuneIn, Amazon Music, or on your favorite podcast platform.

Show highlights

🔹 Friend.Tech Token Crash: Friend.Tech’s token dropped 96%, highlighting the risks of launching tokens without sustainable product planning and user retention strategies.

🔹 Project Exits and Ethics: Early token launches raise concerns about ethical obligations when teams abandon projects, with accusations of rug-pulling increasing.

🔹 Airdrop Farming’s Impact: Airdrop farming distorts true user engagement, leading to inflated metrics that misrepresent product-market fit and real user growth.

🔹 Venture Capital in Crypto: Low barriers for VCs have led to inflated project valuations, often resulting in overhyped, underdelivered crypto ventures.

🔹 Challenges of Early Token Launches: Early token releases often harm long-term project potential by confusing market signals and damaging user retention.

🔹 VC vs. Liquid Funds: Debate over whether venture capital is extracting value from crypto or whether liquid funds can improve market efficiency.

🔹 Hedge Funds and Market Efficiency: Hedge funds may improve market liquidity, but their impact on long-term crypto growth remains under scrutiny.

🔹 Speculative Markets and Long-Term Value: The crypto market continues to grapple with balancing short-term speculative plays and the creation of sustainable, long-term value.

Hosts

⭐️Haseeb Qureshi, Managing Partner at Dragonfly

⭐️Tom Schmidt, General Partner at Dragonfly

⭐️Tarun Chitra, Managing Partner at Robot Ventures

Guest

⭐️Jason Choi, Co-Founder of Tangent

Disclosures

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