“VC Coins”

“VC coins” are crypto projects with tokens that raised money from private investors rather than doing public ICOs.

After the great ICO craze of 2017, and the backlash by the SEC, a few alternative fundraising methods for crypto project popped up. These are IEOs, initial exchange offerings, STOs, security token offerings, and private offerings that use SAFT agreements (what some call “VC coins”).

Examples of VC coins include Hedra Hashgraph and Orchid. In all cases the model tends to look like a typical VC funded start-up with funding rounds that hyper speed. For example a token might do a pre-sale in early 2018, a private SAFT round in late 2018, and then a public launch in mid 2019 where presale pays 1/20th launch price, SAFT pays between 1/3rd and launch, and then retail gets an instant pump and dump.

So we have not just the VC model, but the circa 2019 WeWork, Uber, Slack, etc model a bit here. So far VC coins have had a bumpy road in terms of price, especially since they sort of just stayed private through much of the bear market and avoided the draw down, but in terms of tech they do tend to put their funding to use and follow through.

Anyway though, if you here the term used, that is what it means.

Author: Thomas DeMichele

Thomas DeMichele has been working in the cryptocurrency information space since 2015 when CryptocurrencyFacts.com was created. He has contributed to MakerDAO, Alpha Bot (the number one crypto bot on Discord),...