Venture capital institutions lament: For the first time in eight years in the industry, they encountered a project that does not keep its promises.
ArkStream Capital co-founder Ye Su accused on Twitter that his company invested in a project two years ago, which went live on Binance last year. But the project secretly increased its issuance by 60% under the guise of ecological subsidies just a week before listing. It wasn't until the unlocking approached this year that they told investors: They invested based on the FDV before the increase, not the FDV after the 60% increase. He stated that after eight years of investing in cryptocurrency projects, this was the first time he encountered such operations.
He contacted more than a dozen co-investors and found that everyone was very dissatisfied, but everyone was waiting for the lead investor to express their opinions. Hearing this, he was already laughing in anger because this project was incubated by the lead investor. He said that now only their company is still following up on progress, communicating with the project party weekly, and seeking explanations. He believes that the cryptocurrency industry has reached a point where project parties are competing to be worse, and someone needs to break the window.
KOL added details: The project sells computing power, supported by numerous luxurious institutions, and the founding team has Binance employees.
KOL Crypto Fearless further pointed out: This garbage project issued an additional 60% before TGE last year, and you VCs kept silent. It was hacked before going live, and you VCs didn’t speak up. Before TGE, the CEO at the front desk was replaced, and you fully supported it. During the airdrop, so many users were harmed, and the complaints were overwhelming, yet you VCs pretended not to hear. After going live, the project party has been selling OTC, and some institutions are still helping to sell quotas. You strongly endorsed it, using Binance's expectations for marketing, while the project party raised several tens of millions of U from retail investors by selling computing power.
A project that almost meets all failure factors, just because of the support from several luxurious institutions, and two co-founders are former employees of Binance, has tens of billions of dollars FDV listed on major exchanges. Now the peak has dropped nearly 90%, it's time for VC to unlock, and the project party starts to deny it, harming your interests, and only then do you publicly voice your concerns.
Many clues point to io.net as the controversial protocol
Someone immediately pointed out the DePin project io.net in the comment section:
Listed on Binance last year: On June 11, 2024, it was launched as the 55th Launchpool project.
CEO replaced before TGE: On June 9, 2024, founder Ahmad Shadid resigned, COO Tory Green took over.
Team includes former Binance members: The official team page lists several members "Previously @ Binance" (The author adds: including CEO Gaurav Sharma and Product Head Raj Karan, both from Binance.
Selling computing power/DePIN model: Officially positioned as Decentralized GPU Cloud for AI (decentralized GPU cloud for artificial intelligence).
Luxurious VC backing: Includes Multicoin, Delphi, Animoca, etc.
FDV controversy before and after unlocking: After public Tokenomics, private placement and team share is high, triggering FDV controversy.
Price peak fell over 80%: Peak on the first day was $4.5, currently $0.68, a decline of about 85%.
It is worth noting that Ye Su stated that the project was incubated by the lead investor. Hack VC, the lead investor of io.net, was also the speculator previously named by KOL Mosi, who raised the price.
This article is reprinted with permission from: (Chain News)
Original title: (Institutions also got burned! VCs lament billions of dollars valuation projects breach agreements, pointing to a well-known decentralized computing protocol)
Original author: Neo
'Institutions also got burned! Lamenting billions of dollars valuation projects breach agreements, could it be io.net?' This article was first published in 'Crypto City'
