One overriding sentiment of the last year or so has been “the evil VCs have an unfair advantage, they are dumping on us”. Such sentiment became popular enough that it became an effective marketing and community building tool for crypto projects. You can hardly blame retail investors for resonating with this populist rhetoric. It feels a bit like the VCs have cheat codes. First, of course, the VCs get access to the best deals and making money is easy for them. And some VCs have a different cheat code — they are simply in the right place at the right time with the right amount of shame tolerance or audaciousness. Finally, the SEC gave all of them the greatest cheat code: they scared founders into only raising from professional investors.

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