The blockchain industry is increasingly being manipulated by venture capitalists focused on rapid exits rather than building sustainable businesses. Despite a global venture financing downturn, a significant portion of investment still channels into token deals aimed at short-term profits. These structures often resemble Ponzi schemes, relying on fresh investment to sustain promises made to earlier investors. Recent legal actions underscore the reality of fraud within this space, highlighting cases where promised returns turned out to be recycled funds. The current funding model, favoring hype over substance, jeopardizes the integrity of the blockchain ecosystem, pushing skilled developers away and eroding public trust. To counter this trend, it is essential that regulatory measures are adopted, alongside a shift in investment criteria to prioritize long-term utility and user adoption. If venture funding continues to pursue unsustainable exits, the potential of Web3 will be lost amid a cycle of exploitation and failure.

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