If we want better apps, we need better incentives. Investors and founders shouldn’t be getting exits through liquid tokens if there’s been no meaningful, sustainable traction. Success should be DAUs & meaningful adoption, not launching your token at the right time.

Research Director @ The Block. Your source for anything related to Blockchain VC/M&A activity. Formerly @ Messari

100%! Related question though: how is a token launch so different from an IPO? Lots of listed companies are still fine post-IPO.

Explaining complicated things in simple words. Contributor to blockchain newsletter project: https://www.blockswithbenefits.com

Good point actually. Would be easy to fix that for early-stage investors who could prevent the startup to speedrun the process but it’s probably a question of incentives. Maybe the big foundations could get active as early-stage investors? They’re in it for the long run after all.

The major difference is with traditional VC - startups rarely have the ability to exit (IPOing, acquired, etc.) and it’s typically on a long time horizon. Whereas with the crypto, if there’s a token, TGEs offer a way for a liquidity event and an exit, regardless of how well the project has performed