In a recent Crypto Banter video, the focus was on the evolving dynamics of altcoin investments, especially the problematic role venture capital (VC) plays in new token launches. The discussion highlighted how VCs often inflate crypto valuations, making new tokens less appealing to retail investors.
The video also provided insights into promising altcoins that could perform well, particularly if the Ethereum ETF is denied.
Crypto Banter criticized venture capitalists for driving up token valuations before they reach the market. Previously, new tokens raised funds at $20-30 million valuations. Now, they’re valued at over $1 billion before retail investors can buy, leading to premium prices and significant losses for retail investors. StarkNet serves as a prime example—it dropped 74% after reaching a $1 billion valuation due to low buyer interest.
To counter these VC-induced risks, Crypto Banter recommends several altcoins with high market cap to fully diluted valuation (FDV) ratios. These tokens have most of their supply already in circulation, reducing the risk of sudden supply increases and making them likely to perform well, especially if the Ethereum ETF is denied.
With 78% of its tokens in circulation and a growing ecosystem, Solana is a strong bet thanks to its extensive technical base.
Near Protocol is another solid option, boasting 90% of its tokens in circulation, which minimizes the risk of value decline due to new token releases.
Fantom stands out due to its recent Sonic upgrade, transforming it into a high-speed side chain for Ethereum. With most of its tokens already circulating, it presents a promising investment opportunity.
Injective is notable for its innovation and market position. It’s a good choice for investors looking to avoid VC-dominated projects.
Avalanche is a stable investment due to its large market size and high proportion of circulating tokens.
While not traditionally a top pick, BNB’s technical chart shows promising upward trends, making it a potential buy.
Arweave is particularly attractive as 100% of its tokens are already in the market. Its recent outperformance against Filecoin underscores its potential.
With 94% of its tokens in circulation, Polkadot offers a compelling investment, especially with its recent technological upgrades.
For investors navigating the altcoin market amidst VC-dominated projects, focusing on tokens with high circulation and strong fundamentals is crucial. Crypto Banter highlights tokens such as Solana, Near Protocol, Fantom, Injective, Avalanche, BNB, Arweave, and Polkadot as promising opportunities that minimize the risks associated with VC influence.
Also Check Out: Top Altcoins to Keep a Close Eye on Amid the Hype on Spot Ethereum (ETH) ETF Approval
Do you agree with Crypto Banter’s picks? Let us know which altcoins you’re keeping an eye on.
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