Recent Trends in Token Distribution – Variant

On a recent Acquired episode, Multicoin Capital VC Kyle Samani points out why VCs have far greater risk-tolerance to make moonshot bets with tokenized web3 companies than they do with non-tokenized web2 companies: web3 VCs can always sell off the tokens, typically after a vesting period of a year. Where traditional VCs see most of their struggling ... See more

There are two things I want to point out about this feedback loop. First is how much of the initial growth is driven by speculation. Because most tokens are programmed to be scarce, as interest in the protocol grows so does the price per token and thus the market cap of the network. Sometimes interest grows a lot faster than the supply of tokens an... See more

In the same month, SushiSwap, a fork of Uniswap, was launched. SushiSwap conducted a “vampire mining” attack to migrate liquidity away from Uniswap by introducing the SUSHI token to incentivize users. Not to be outdone, Uniswap did a UNI token airdrop in September 2020, resulting in a windfall profit for all users who interacted with the Uniswap pr... See more