VCs are unfortunately, on the whole, all too discerning when it comes to Web3. It's a meme now in the community that when a VC and tokens are involved, there's a good chance they are getting preferential treatment and using the end users as their exit liquidity. That's not necessarily the case here but "greed" has become a general theme and the motivations behind otherwise-puzzling investments become clear when viewed through that lens.
>>cycrut+Fe
> the SEC is protecting people and their money… by sitting on their hands and doing jack shit
It’s unclear if they have jurisdiction. The likes of Coinbase’s Armstrong have certainly been lobbying hard to constrain it. In any case, it’s hard to be sympathetic when escaping regulation is the rallying cry of so many crypto enthusiasts.
>>JofArn+(OP)
Without wanting to defend the VCs, this is the same deal they would strike by buying equity in a company. It's in their interest to take a stake at lowball prices so they can 100x or whatever when it's time to IPO.