🧠 Topic: How funds work in crypto (VC, market makers), why they buy tokens and how to read their actions between the lines
🧳 Who are crypto funds?
(venture funds)
💸 Invest in early stages of projects (pre-seed, seed, private)
🎯 The goal is to enter cheap, exit expensive
🪙 Receive tokens at a price lower than the market, often with vesting
Market makers (MM)
⚙️ Provide liquidity on exchanges
💰 Can receive tokens to launch trading
📊 Support price stability — sometimes move the market 'in the right direction'
Hedge funds and trading companies
📈 Speculate on market movements
🧠 Strategies: arbitrage, shorting, longs, algorithmic trading
💡 Why do funds need tokens?
🪙 Get a share in the project — like 'shares' in a startup
📈 Earn from the price increase after listing on the exchange
💼 Use tokens in DeFi: staking, farming
🎯 Maintain interest in the project — if the token rises, everyone wins
🔍 How to read their actions between the lines?
1. Look at the token distribution
📦 What % do funds have?
⏳ Is there vesting? What is the term?
💣 Will there be an unlock soon?
2. Monitor transactions
🧾 Use sites like Arkham, Lookonchain, Nansen
If funds bring tokens to the exchange → often a sell signal
3. Analyze behavior at (Token Generation Event)
📉 Sharp dump after launch — funds offload
📊 Gradual growth — hold tokens or partially fix profits
4. Research WHO has entered
🙌 If in the project: a16z, Labs, Paradigm, Delphi, Pantera — this is a sign of trust
🤔 If the list is questionable — be cautious
🚨 It's important to understand
Funds are not 'evil', they play their game.
They don't aim to 'make you rich', but they create liquidity.
Their actions can and should be tracked to make decisions with a cool head.
🧠 Conclusion
Funds move the market — but not by magic, but by strategy.
Their behavior leaves traces. Your task is to learn to read them.
📖 In the next issue I will tell: What are OTC transactions, how they affect the market, and why major players don't always buy 'on the exchange'.
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