1. VCs provide a ton of money, to incentivise token issuers.
2. The issuers pump out a pile of tokens that would constitute unregistered penny stocks. The VCs buy in.
3. If the SEC doesn't bust the issuers, the VCs make a bundle, and much quicker than they could funding a productive company.
4. If the SEC does bust the issuers, the poor widdle investors are protected from the evil issuers, who have to refund investors - the VCs don't lose.
It's the gig economy of penny stock scams, with the legal risk being borne by the issuers.