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Monad's Premarket Plunge Exposes VC-Funded Crypto Scams

Monad's Premarket Plunge Exposes VC-Funded Crypto Scams

In the fast-paced world of crypto, where fortunes can flip overnight, a recent tweet from @FabianoSolana has sparked heated discussions about the pitfalls of VC-backed projects. Focusing on Monad—a highly anticipated layer-1 blockchain—the post calls out what many see as inflated valuations and inevitable dumps. If you're new to this, VC stands for venture capital, where big investors pump money into projects early on, often leading to sky-high expectations that don't always pan out.

The tweet breaks it down simply: Monad raised $225 million at a $3 billion valuation, with VCs locked up for years. But when it hit the premarket on Hyperliquid (a platform for trading futures on upcoming tokens), it opened at a whopping $15 billion fully diluted valuation (FDV). "Guess what happens..." the post teases, followed by charts showing a brutal price slide.

Monad premarket price chart showing initial high and subsequent drop Close-up of Monad's price decline in premarket trading

These visuals tell the story: starting around 0.13699, the price nosedives to 0.02907, marking a massive loss for early traders. Fabiano wraps it up by declaring, "blown-up VC projects are the biggest skem in crypto." (Skem? That's crypto slang for scam, folks.)

Why This Matters for Meme Token Enthusiasts

At Meme Insider, we're all about the wild, community-driven side of crypto—meme tokens that rise on hype, memes, and sheer fun. But posts like this highlight a stark contrast. VC-funded behemoths like Monad promise revolutionary tech (in this case, an EVM-compatible chain aiming for high throughput), but the reality often involves locked-up tokens for insiders and retail investors left holding the bag.

Premarket trading on platforms like Hyperliquid lets people bet on tokens before they officially launch. It's exciting, but as seen here, it can amplify hype only to crash hard when the buzz fades. Replies to the tweet echo this sentiment: one user jokes about shorting it down to $2 billion, while others defend the project, calling the drop manipulation.

The Bigger Picture in Crypto Valuations

This isn't isolated. Many VC-heavy projects face similar fates. Remember, FDV is the total value if all tokens were circulating—often misleading because most aren't available yet. With VCs getting in cheap and unlocks looming, prices can tank post-launch. For meme tokens, though, it's different: no big backers, just organic growth. That's why we're seeing a shift toward fair-launched projects that avoid these traps.

If you're diving into DeFi or blockchain, keep an eye on these dynamics. Tools like DexScreener or CoinMarketCap can help track real-time valuations. And for more on Solana-based memes—since Fabiano's handle nods to that ecosystem—check our guides on thriving in volatile markets.

Lessons from the Monad Drama

Ultimately, Fabiano's tweet serves as a wake-up call. In crypto, tech alone isn't enough; tokenomics, community, and fair distribution matter. As we build our knowledge base here at Meme Insider, stories like this remind us to question the hype. Whether you're trading memes or eyeing L1s, always DYOR (do your own research).

For the full context, see the original tweet. What's your take—VC scam or just market forces? Drop your thoughts in the comments!

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