- Cardano founder Charles Hoskinson calls VC coins the “last cycle,” promoting the “CrimeFi” concept.
- 1.2 million SOL tokens, worth $2.06 billion, to unlock for VCs in March 2025.
- Solana’s “VC chain” label intensifies amidst large FTX token unlocks.
Cardano founder Charles Hoskinson has come down heavily on “VC coins” calling them outdated and declared “CrimeFi” as the next big trend. His remarks followed a community member’s critique of VC-backed chains, comparing their large token unlocks to “sophisticated CrimeFi.” The discussion shed light on the growing concerns about the influence of venture capital in the cryptocurrency market.
Actually VC chains that have big unlocks happening or coming up, and that were completely hyped up over the last year or so, are a sort of slow motion version of the presidential coins. Sophisticated CrimeFi. For true CrimeFi connoisseurs
Hoskinson’s comments come as the crypto world braces for significant token unlocks in March 2025, with Layer 1 tokens like Solana ($SOL) liquid staking, and AI projects leading the charge.
In particular, 1.2 million SOL tokens, worth over $2.06 billion, from FTX sales will be released for venture capitalists on March 1st. This event has intensified scrutiny on Solana, which has long been labeled a “VC chain” due to its substantial early funding.
The upcoming SOL unlock has cast the spotlight on the previous FTX bankruptcy auctions where 41 million SOL tokens were sold. Notable venture capital firms like Galaxy Digital, Pantera Capital, and Figure have acquired significant SOL holdings at different prices, ranging from $64 to $102 per token.
Cardano Founder Raises Concern For “CrimeFi” and VC Influence
These large-scale acquisitions and subsequent unlocks raise questions about market manipulation and the potential for price volatility.
The concept of “CrimeFi,” as cited by Hoskinson and the Cardano community member, alludes to the perceived lack of transparency and potential for illicit activities in VC-backed projects. Critics argue that large token unlocks can trigger concentrated selling pressure, negatively impacting retail investors.
Additionally, the Solana meme coin space is under scrutiny after LIBRA and MELANIA scandal caused massive losses for blockchain investors. These incidents have raised questions on pump-and-dump schemes within the Solana meme coin market, shaking investor confidence.
Overall, Hoskinson’s comments highlights the need for greater transparency and accountability to protect retail investors from potential market manipulation.