When evaluating major market transactions, most people focus on the deal size or strategic implications. But here's what's often overlooked—how it actually gets funded can be just as telling.
Are we talking venture capital, private equity, token-based financing, or something more creative? The funding source reveals a lot about the acquirer's conviction level, risk appetite, and long-term vision for the acquisition.
In crypto, this matters even more. A project funded through community treasuries has different incentives than one backed by traditional VC. Staking mechanisms, governance tokens, and DeFi protocols add layers of complexity that traditional markets don't have.
So next time there's a major market move, dig into the funding structure. The real story often hides there.
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SellTheBounce
· 8h ago
Funding structure? Haha, most people read the funding news and rush in, only to become bagholders. Let me tell you, projects funded by community treasuries and VC backing—one dies from governance issues, the other from arbitrage—both are doomed. When there's a rebound, you have to sell; there's always a lower point waiting for you.
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rugpull_survivor
· 01-20 18:54
Really, the method of financing is much more important than the deal size, but most people simply don't see this... community treasury vs VC-backed is completely two different logics.
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governance_lurker
· 01-20 18:54
The financing structure has indeed been overlooked for too long, especially since the incentive mechanisms for VC and community treasury in crypto are completely different. This is very important.
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LongTermDreamer
· 01-20 18:54
Well said, the financing structure is indeed a heavily overlooked aspect. I started observing this three years ago and found that most people only focus on deal size, which is indeed pointless. Community treasury financing versus VC-backed projects, the incentive mechanisms are completely different, which is why some projects can survive for three years, while others fail immediately.
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AirdropworkerZhang
· 01-20 18:52
Funding structure is indeed easy to overlook, but analyzing where the funds come from can truly reveal the acquirer's genuine intentions.
Community treasury vs. traditional VC approaches are vastly different; the former has to be accountable to a group of token holders, while the latter purely pursues returns.
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BrokeBeans
· 01-20 18:49
Wow, this is the key. The financing structure is much more interesting than the valuation number.
When evaluating major market transactions, most people focus on the deal size or strategic implications. But here's what's often overlooked—how it actually gets funded can be just as telling.
Are we talking venture capital, private equity, token-based financing, or something more creative? The funding source reveals a lot about the acquirer's conviction level, risk appetite, and long-term vision for the acquisition.
In crypto, this matters even more. A project funded through community treasuries has different incentives than one backed by traditional VC. Staking mechanisms, governance tokens, and DeFi protocols add layers of complexity that traditional markets don't have.
So next time there's a major market move, dig into the funding structure. The real story often hides there.