Placeholder Partner: There are many high-quality venture capitals in the crypto industry, but they are often discredited by fake venture capitals, and the public is often instigated by them

Chris Burniske, partner of Placeholder, wrote on X: "Regarding the questioning of venture capital (VC): There are many high-quality VCs in the crypto field, and they are less active on X. High-quality VCs allow entrepreneurs to innovate without debt or innate wealth. If good decisions come from background, ability or experience, then high-quality VCs often help entrepreneurs improve at least one of these dimensions. High-quality VCs are often discredited by "fake VCs (Larp VC)" who only want to enter the private equity market and accelerate liquidity. They do not provide any support, but only want to maximize their profits. It is important not to confuse the two. Fake VCs are not respected by entrepreneurs and often find it difficult to establish institutions with lasting influence because they provide zero or even negative value, which will be spread by word of mouth in the industry. However, the problem is that the public on X often cannot distinguish the difference between the two in a timely manner, especially when many fake VCs are KOLs. "They start as a small fund using their audience, then do what I would classify as 'VC behavior' and what I would classify as 'short-term, pseudo-VC behavior'. 'Blame the VCs' is a common refrain, but it reveals how little the public knows about quality VCs and their limitations, and it is often instigated by those who are most interested in misleading the public."