Now discussing and analyzing a blockchain game project, it's rare to mention which big fund invested in this project anymore.

Because I have seen very famous funds also collude with project parties to scam retail investors. Clearly, they haven’t invested a penny, yet the project parties announce via media news that they have closed an investment from a certain big fund, and major media outlets spread this news far and wide. The fund pretends not to see it, and when issues arise and they are questioned, they claim to be completely unaware, saying it was a unilateral action by the project party.

Later, it was discovered that this is a common practice in the Web3 industry: funds first verbally or only issue a conditional term sheet, promising to invest in a certain project, but they don’t actually transfer any money. They tacitly allow the project to use the financing news to generate some traffic and create a wave of FOMO. Once they have collected money from retail investors who buy assets, and have cash flow revenue, and opportunities for exits in the next round of financing, or opportunities to go public, the fund then transfers the investment amount to the project party in batches.

If the project party fails to operate effectively, cannot secure the next round of financing, or cannot go public, and ends up rug-pulling, retail investors will be left with losses, while the fund suffers no loss at all, because the promised investment amount was never actually sent.

The so-called 'the gentry's money is returned in full, while the common people's money is divided seven to three.'

Many funds complain, because indeed in the past year or two, first-tier funds have incurred massive losses when investing in projects. Big funds face performance pressure and must invest some amount every year, so they have to resort to such tactics to protect themselves: in short, they treat Web3 retail investors as gamblers, scamming them without any moral pressure.

Over the past two years, I have seen many Web3 VCs suffer losses, and numerous fund managers have become unemployed. I can only say: the development of the Web3 industry is hard to understand, and the deaths are also understandable.

In the past three years, the insights gained in Web3 have exceeded those accumulated in 20 years of Web2, and I have already been disenchanted. I will no longer pay attention to news about which project received investment from which big fund, because much of it is fake. Even news from major media outlets cannot be distinguished unless one sends an email to confirm with the fund.

Don't ask which fund or project I am referring to in the examples above. The answer is I don’t know; the project has already died.