According to Flood (@ThinkingUSD), traders should exercise caution when purchasing VC-backed tokens that lack revenue streams, as these investments present significant downside risk and often underperform in volatile crypto markets (source: Twitter, May 7, 2025). This perspective reinforces the importance of fundamental analysis in token selection, suggesting that tokens without proven revenue generation are likely to experience higher sell-offs during market corrections, impacting portfolio stability for both short-term and long-term traders. Understanding the revenue models of tokens is crucial for risk management in current crypto trading strategies.

According to @ThinkingUSD, VC tokens are a high-risk investment, suggesting that they could lead to significant losses for buyers. However, for informed traders, these tokens present viable shorting opportunities, highlighting the importance of strategic market positioning in cryptocurrency trading.

According to Michaël van de Poppe, the altcoin market has experienced a painful correction, with prices dropping by 60-80%. Venture capital (VC) tokens have been particularly hard-hit and appear overstretched. Despite this, the market has had a significant retest and is likely to reach new highs.