The end of the year has come again for summarizing. Although we all know that VC is in a terrible state, at least we should gain some experience even if we can't make money. After researching the drop to zero projects, I found that their paths to drop to zero are roughly as follows:

Technical products are reliable, but if you don't understand promotion, there will be no users.

The market promotion is done well, but the product fails to deliver, and the claims made cannot be realized.

The product and promotion are good, but the founding team had conflicts and split up, leading to the dissolution of the team.

Some founders are not firm enough in their beliefs, constantly changing directions, which results in running out of funds.

Some founders are overly determined and do not listen to any advice from investors, only to realize that their chosen path is unfeasible.

Some founders treat the raised funds as their own income, misappropriating the raised funds to trade cryptocurrencies, buy houses, indulge in extravagance, or invest in their other projects.

There are ones who never take the initiative to report progress to investors, and when you go to ask, you find that they have quietly disbanded.

There are also allegations of fraud in the fundraising materials, part-time team members are said to be full-time, prospective partners are said to be already collaborating, and previous project investors are said to be current project investors.

In the following situations, investors should not condone and should assert their rights.

The above are all internal reasons within the team. If you are lucky enough to encounter a project with a good product, a reliable team, and effective marketing, it could still drop to zero because:

There was a case where the raised funds were put into CEX for financial management, and the CEX faced a collapse that led to a break in the capital chain.

There was a bug in the code, and the smart contract was hacked, resulting in the loss of funds.

There has been a large amount of token airdrop to the community, or it has been targeted by wash trading studios, which irrationally dumped the price and exhausted the funds for price protection.

Some have paid high intermediary fees or listing fees, only to find that small exchanges have no natural buying power at all, or are delayed in listing and dragged on until there are no funds.

After being listed on the exchange, it was found that the repurchased tokens were more than the tokens in the exchange's on-chain wallet, leading to a situation where the CEX printed fake coins and drained the funds.

Some founders are being captured by distant seas in China, and the funds raised are all used to pay protection fees.

It really confirms that saying---starting a business is a matter of life and death. Therefore, it's only natural for VC to make money; if VC isn't making money, it means the industry has no future.

PS. I won't name these drop to zero projects, you can identify them yourself. I will commend the outstanding projects that are still alive another day, to let everyone know that there is still hope in the crypto industry.