Berachain Co-Founder Admits to Selling Too Many BERA Tokens to Venture Capitalists

Berachain co-founder Smokey the Bera has expressed his regrets over the allocation of BERA tokens to venture capitalists ahead of the mainnet launch. In a recent interview, Smokey stated that if he could go back, the team would not have sold as many tokens to VCs.

During an appearance on the Unchain podcast, Smokey revealed that a “vast majority” of BERA tokens were sold during the seed rounds in early 2022 and the Series A funding round. At the time, the team could not have foreseen the project’s massive growth.

The Consequences of Token Distribution

Following the mainnet launch on February 6, Berachain faced backlash from traders who complained about the project’s airdrop allocations, tokenomics, and insider trading activity. Analysts uncovered issues with the token distribution structure, specifically how early investors and insiders benefited from the network’s staking mechanism.

“We totally sold too much to VCs and our goal is now to make sure that we do right by people overtime in light of that,”

said Smokey. As a result, the team is currently working on buying back portions of the BERA token supply from VCs to minimize the dilution of tokens experienced by the Berachain community.

BERA Token Performance

At press time, BERA has seen a nearly 15% increase in price to $7.18 in the past 24 hours of trading. However, the token has fallen by nearly 1% in the past week. The circulating token supply currently stands at 107 million tokens, with a total supply of over 500 million tokens.

Berachain’s native token has reached a market cap of over $750 million and a fully diluted valuation of nearly $3.5 billion. The token has seen a 29.7% increase in daily trading volume to $325 million in the past 24 hours.

Tips for Investors

When investing in cryptocurrencies, it’s essential to consider the token distribution structure and potential risks. Here are some tips to keep in mind:

  • Research the project’s tokenomics and distribution structure.
  • Understand the potential risks and benefits of investing in a new cryptocurrency.
  • Keep an eye on market trends and adjust your investment strategy accordingly.

Stay up-to-date with the latest news and developments in the world of cryptocurrencies by visiting Global Crypto News. Learn more about Berachain and other emerging cryptocurrencies and stay ahead of the curve in the ever-changing world of digital finance.

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