When VC presses the sell button: Polychain, Celestia and the wealth transfer game of the crypto world

TechFlow
TechFlow
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Author: Pavel Paramonov

Compiler: Deep Tide TechFlow

This article discusses the recent situation in @celestia and @polychain where Polychain sold $242 million worth of $TIA and I'll explore the pros and cons and what lessons we can learn from them.

Link to original tweet: click here

Have you ever anticipated that investors will not make money?

Many people, including good researchers, consider the Polychain incident to be predatory and uncertain. How can a Tier 1 fund sell such a large allocation to the open market and hurt the price?

First of all, Polychain is a venture fund whose job is to make money from liquid assets purchased when liquidity is low (I can't believe I would say that).

The risks of Polychain's investment in Celestia lie not only in its early stages, but also in the early stages of concepts such as an external data availability layer. At the time, the concept was still very new, and...

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