Looking at the $SCR data, I understand very well why I've become cold to L2 projects.
The massive project that once raised over $70M now has a circulating market cap of just $19 million.
Even if all tokens were unlocked, it would only be $45 million – a market cap still below the amount raised!
Raise millions from VCs, enter Binance Launchpool with a billion-dollar valuation, and this is the result at the end of the day.
Poor market conditions or lack of liquidity harshly punish L2 inflation.
The inflated valuations by VCs melt away after exchange listing.
As investors, we must become smarter and position ourselves in projects with sustainable tokenomics models.
We really need to get smart and make the right moves now.
