VCs Criticize Token Generation Events as 'Crypto Casinos'

A partner at Begin Capital argues that the current token issuance model, often marketed as a decentralized IPO, is fundamentally flawed and resembles a gambling market. The critique highlights three critical failures: a lack of rigorous vetting, a disconnect from business fundamentals, and poor transparency. With projects often launching without profitability or real users, retail investors are frequently left holding devalued assets. The industry is now shifting toward more traditional financing models, such as combining SAFE and SAFT agreements, while prioritizing proven business models in sectors like AI, payments, and prediction markets.