Echo founder accuses some VCs of blocking community discount sales

ChainCatcher news, community fundraising platform Echo founder Jordan Fish (Cobie) accused some VCs of pressuring crypto projects to prevent them from offering discounted prices to Echo investors, and in some cases, completely opposing community sales unless they are in later rounds with high valuations.

Matt O'Connor, co-founder of the ICO platform Legion incubated by Delphi Labs, stated that while Legion has not encountered much public hostility, some venture capital firms push projects to avoid public sales due to regulatory risks and oppose offering discounted valuations or short vesting periods. He said, "For me, the vesting period is particularly ironic because if the team airdrops unlocked tokens, the venture capital firms won’t complain, but if the team sells a small portion of unlocked tokens, it suddenly becomes a problem."

Rob Hadick, a general partner at Dragonfly, stated that VCs will continue to be a primary way to help entrepreneurs innovate, and crowdfunding can also become "the value-added part of this story."