Why Do "Venture" Cryptocurrencies Lose Value?

"Venture" cryptocurrencies are tokens backed by major venture capital (VC) funds. They often have a high initial valuation, but their price can decline over time.

Main Reasons for Price Drops:

🔵 Token Unlocking
Most venture tokens are distributed in stages (vesting). When unlock periods arrive, early investors and funds may sell part of their holdings, creating downward pressure on the price.

🔵 Profit-Taking by Funds
Venture capital funds invest at early stages at low prices and take profits during price increases. When large quantities of tokens are sold, it triggers a chain reaction of price declines.

🔵 High Token Emission and Inflation
Many venture cryptocurrencies have an aggressive emission model, where new tokens are unlocked every month. If demand does not keep up with supply, the price drops.

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🔵 Lack of Real Demand
Many venture projects are based on speculative expectations rather than real utility. If users do not see a strong reason to actively use the token, its value decreases.

🔵 Market Maker Manipulation
Some venture projects artificially inflate prices before listing on an exchange, creating temporary hype. After listing, the price drops sharply, leaving retail investors at a loss.

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