The launch of the Token Bera de Berachain has revived the debates about the currencies backed by risk capital (VC), with critics pointing to its supply of low circulation and a highly diluted high assessment (FDV) as key concerns.
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The controversy
- After an initial increase of 71%, Bera sank 63%. This raised the concern that its low floating, only 15% of the total supply, created artificial shortage before a massive sale.
- Merchants argue that the tokenomic favors the first investors while exposing retail participants to volatility. This is similar to the past problems that face other projects such as Starknet.
- With a totally dilled assessment of 2.7 billion, critics say that excessive valuations promoted by the financing of risk capital inflicts prices before launch, benefiting experts at the expense of regular investors.
Market reaction:
- Investors such as Moonrock Capital CEO, Simon dedicate, claim the high FDV tokenomics, are unsustainable.
- SED warned that they mainly enriched VCS, market manufacturers and centralized exchanges.
- Some experts advocate community rounds to allow the first supporters to enter more fair assessments instead of dealing with inflated FDVs after launch.
- Ed Roman of Hack VC, an investor in Berachain, argues that FDV is established by the market, not the project itself, and points out that 21% of Bera is higher than many competitors.
In a highly loaded publication in X, the founder of Bitmex, Arthur Hayes, recommended that the founders work with market manufacturers and exchanges so that their tokens open at lower prices.
This article is published in Bitpins: Quick Take: Why Berachain Bera Token faces a violent reaction for the influence of VC
Sources: The block, Challenging news
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