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Key Criteria VCs Prioritize When Assessing a Crypto Project

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When evaluating crypto projects, VCs rely on a distinct set of criteria that reflect their investment philosophy and the project’s potential. These criteria can be segmented into three primary areas: business and strategy, product and technology, and marketing and community.

In this article, we gathered insights from leading venture capitalists (VCs) across the crypto space to shed light on what they look for when assessing crypto projects. Contributions come from experts at Axia8 Ventures, Bing Ventures, Outlier Ventures, and Capitable Group, who shared their perspectives on the key criteria that determine whether a project is worth the investment.

Business and Strategy

VCs look at several things from a business and strategy perspective. Let’s take a closer look at them:

1. Founding Team and Leadership

For most venture capitalists (VCs), evaluating the team behind a startup is the critical first step in their investment decision. A strong, experienced, and cohesive team can significantly influence a startup’s potential for success. 

VCs typically assess the founders’ track record, leadership skills, industry expertise, and ability to execute their vision. They also look for team dynamics, such as how well the members collaborate, handle challenges, and adapt to changing market conditions. 

Wayne Lin from Axia8 Ventures emphasizes, “We invest in people first. The founder’s vision, adaptability, and resilience are key to our decision-making. If a founder can pivot and iterate multiple times, even after setbacks, we know they have what it takes to succeed”​. 

This people-first approach is critical in early-stage projects where the product is still being developed.

Echoing this sentiment, Bruce Lan from Bing Ventures adds, “The ability to execute and adapt is what sets great teams apart. VCs need to see not only technical expertise but also the soft skills needed to lead and inspire teams through uncertain market conditions”​. 

Strong leadership, combined with clear communication, often makes or breaks a project in its early days.

2. Vision and Long-Term Strategy

For venture capitalists (VCs), a project’s long-term vision is very important when making investment decisions. They aren’t just interested in quick profits; they want to see a clear plan for how the project will grow over time. The project needs to show how its goals fit with bigger trends in the industry so that it can keep up as the market changes. 

VCs look for projects that can adapt and stay strong in the future, not just ones that do well right now. A solid long-term vision helps investors feel confident that the project will succeed in the long run.

As Pietro Negri from Outlier Ventures explains, “We look for teams that understand their industry’s trajectory and are positioned to evolve as trends shift. Projects that capitalize on emerging sectors and adapt to the market’s needs stand out.”

Innovation alone isn’t enough.

Bruce Lan from Bing Ventures emphasizes that “VCs want to see that a project is not only innovative but also relevant to where the market is headed. Having a clear vision of how the project fits into future industry developments shows foresight and adaptability.”

This adaptability is key to ensuring a project’s long-term success in a rapidly changing environment.

3. Regulatory Compliance

With more regulations coming in, compliance isn’t optional anymore—it’s a must. Projects that focus on legal issues show investors they’re less risky. VCs prefer projects that are ready for future regulatory changes. Following these legal rules not only reduces risk but also helps ensure the project’s long-term success as the crypto industry faces stricter rules.

Product and Technology

VCs don’t stop at the business and strategy level. In order for a VC to consider funding for crypto projects, it also looks at the product and its technology.

4. Product-Market Fit

Product market fit is a crucial indicator for VCs because it shows that there is a real demand for the solution a project offers. VCs want to invest in projects that have already identified their niche and attracted users or customers. This traction helps reassure investors that the project is more than just an idea — it has practical value in the market.

A strong product-market fit goes beyond simply having a product available; it proves that the team understands its audience, knows its pain points, and has developed a solution that effectively addresses those needs. This kind of fit drives user adoption and signals future growth potential. For VCs, it’s not just about whether a product exists but whether it has a market that genuinely needs and wants it.

Additionally, product-market fit shows that the project is more likely to adapt to changes in market demands. When a product resonates with its audience, it has a higher chance of retaining users and expanding its customer base over time.

5. Minimum Viable Product (MVP)

For many VCs, an MVP is a sign of real progress.

Matthew Tang from Capitable Group explains, “A working MVP is crucial to eliminate doubts about a project’s feasibility. It’s a sign that the team can deliver on their promises and that the project is progressing in a tangible way”​. Investors look for MVPs to validate the team’s technical abilities and the project’s potential in the market.

6. Scalability and Technical Infrastructure

Projects must demonstrate that they can grow without sacrificing their technology. Scalability is especially important in the blockchain space, where network congestion or high gas fees can limit growth. Venture capitalists want to see that the project’s technical infrastructure can handle an increase in users without a drop in performance. If a blockchain project can’t scale effectively, it risks slowing down or becoming too costly for users, which can halt its growth.

Addressing scalability challenges early on is crucial to attracting serious investment. VCs look for projects that not only have a solid user base but are also prepared for expansion. Whether it’s through upgrading technology, optimizing network efficiency, or preparing for new market demands, the ability to scale is a key factor in making a project appealing to investors.

Marketing and Community

Last but not least, is marketing and community, often considered as the most important aspects of Web3 projects. But what aspects do VCs look at?

7. Partnerships and Strategic Alliances

Strong partnerships can greatly enhance a project’s credibility and visibility in the market.

“Whether it’s a partnership with a VC, a hackathon collaboration, or an AMA session with a media outlet, what really counts is building a digital footprint. When people search for your brand, they should find those collaborations mentioned. These partnerships act as proof of your network and reputation,” BeInCrypto Chief Strategic Partnerships Officer Alevtina Labyuk explains.

These alliances not only validate a project’s standing in the industry but also help establish trust with investors and users. Strong partnerships signal that the project is recognized by reputable entities, which can lead to increased confidence and further opportunities for growth. 

For venture capitalists, seeing these connections reinforces that the project is well-integrated within the broader ecosystem and has the backing to succeed.

8. Community and Network Effects

In the crypto space, a strong community has always been crucial to the success of tier-1 projects. Many top projects by market capitalization have grown by actively involving their community in collaboration and co-creation. This successful model has inspired newer projects to adopt a similar approach.

An engaged community drives adoption through network effects, where each new user increases the value for others. A dedicated community can also help projects weather market fluctuations, providing stability and support during challenging times while continuing to fuel growth. 

Conclusion

VCs prioritize several key factors when evaluating crypto projects, with strong leadership and team dynamics often taking precedence. Beyond the team, product-market fit, MVP development, scalability, and community engagement are critical components that investors weigh before making decisions. 

Ultimately, adaptability and the ability to navigate regulatory landscapes will define a project’s long-term success. By aligning with these core criteria, crypto startups can increase their chances of securing funding and building sustainable ventures.

Disclaimer

In compliance with the Trust Project guidelines, this opinion article presents the author’s perspective and may not necessarily reflect the views of BeInCrypto. BeInCrypto remains committed to transparent reporting and upholding the highest standards of journalism. Readers are advised to verify information independently and consult with a professional before making decisions based on this content.  Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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3 Meme Coins to Watch For The Last Week of February 2025

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DOGEai, TST, and BROCCOLI are three meme coins drawing attention for the last week of February. DOGEai, launched on Solana, is up 110% in the past seven days, positioning itself as a leading AI meme coin.

TST remains one of the most popular meme coins on the BNB chain despite a recent correction. At the same time, BROCCOLI, inspired by Binance co-founder CZ’s dog, has also seen significant volatility.

DOGEai (DOGEAI)

DOGEai is an artificial intelligence coin launched on Solana. Its market cap is now $32 million, up 82% in the last seven days. This rise has positioned DOGEai as one of the most talked-about AI meme coins in recent days.

DOGEAI Price Analysis.
DOGEAI Price Analysis. Source: TradingView.

DOGEai leverages multiple narratives, including Dogecoin’s popularity, the growing interest in DOGE (Department of Government Efficiency), and the broader AI cryptos trend. It defines itself as “an autonomous AI agent here to uncover waste and inefficiencies in government spending and policy decisions,” offering bill summaries and insights into government expenditures.

If the current uptrend continues, DOGEai could test the resistance at $0.048, with potential targets at $0.059 and $0.069. However, if a downtrend emerges, DOGEai has support at $0.030, and if that level is lost, it could drop to $0.018 or even $0.0092.

Test (TST)

TST has emerged as one of the most popular meme coins on the BNB chain, benefiting from the chain’s growing volume, which recently even surpassed Solana.

In the days following its launch, TST reached a market cap close to $500 million, then entered a strong correction phase. Its market cap has since dropped to $78 million.

TST Price Analysis.
TST Price Analysis. Source: TradingView.

If the BNB narrative gains strength again, TST could benefit as one of its most popular meme coins and may test the resistance at $0.10. A breakout above this level could push TST to $0.20 or even $0.25 if buying pressure intensifies.

However, if TST fails to regain strong upward momentum, it could test the support at $0.0719 and potentially drop to its lowest levels since February 9.

CZ’S Dog (BROCCOLI)

BROCCOLI was launched a few weeks ago after Binance co-founder CZ revealed his dog’s name, sparking a flood of BROCCOLI tokens on the market.

The largest of these tokens quickly surged to a $249 million market cap in its early days but has since dropped to $52 million.

Like TST, BROCCOLI benefited from the recent rise of the BNB ecosystem but has since entered a strong correction phase. It is down 40% in the last seven days.

BROCCOLI Price Analysis.
BROCCOLI Price Analysis. Source: TradingView.

If the downtrend continues, BROCCOLI could test support near $0.04, and a break below this level could push it to its lowest price since launch.

However, if the BNB ecosystem and meme coins regain traction, BROCCOLI could benefit, especially given the popularity of dog-related meme coins like Dogecoin and Shiba Inu. In this bullish scenario, BROCCOLI could rise to test the resistance at $0.113.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Ethereum Rollback Debate Intensifies After Bybit Hack

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The crypto community is divided over calls for an Ethereum blockchain rollback following a massive security breach at Bybit.

On February 21, the exchange lost nearly $1.5 billion in ETH to hackers, sparking discussions about whether Ethereum should intervene to recover the stolen funds.

What is a Blockchain Rollback?

A blockchain rollback, also known as a reorganization, involves reversing confirmed transactions to restore the network to an earlier state.

This process usually happens after a major security breach or exploit. Validators must reach a consensus to discard the affected blocks, effectively erasing the malicious transactions.

Despite its potential benefits, a rollback remains a controversial and rarely used measure due to its impact on a blockchain’s trust and decentralization.

Blockchains operate on the principle of immutability, meaning transactions are expected to be final once confirmed. So, rolling back transactions challenges this principle, raising concerns about the security and reliability of the network.

Crypto Leaders Clash Over Ethereum Rollback Proposal

BitMEX co-founder Arthur Hayes has been vocal in advocating for a rollback to solve the ByBit hack. He pointed to the 2016 DAO hack, where Ethereum underwent a hard fork to recover stolen funds, as precedent.

Hayes argued that since Ethereum previously compromised on immutability, another intervention should not be off the table.

“My own view as a mega ETH bag holder is ETH stopped being money in 2016 after the DAO hack hardfork. If the community wanted to do it again, I would support it because we already voted no on immutability in 2016,” Hayes said.

JAN3 CEO Samson Mow also supported the rollback, stating it could prevent North Korea from using the stolen funds to fund its nuclear weapons program.

However, not everyone agrees. Pseudonymous crypto trader Borovik strongly opposed the idea, arguing that a rollback would jeopardize Ethereum’s credibility and neutrality.

Bitcoin advocate Jimmy Song also dismissed the possibility, stating that the Bybit hack cannot be compared to the 2016 DAO exploit. Song emphasized that the DAO hack allowed for a 30-day intervention, whereas the Bybit attack is already finalized, making a rollback impractical.

“I know people are expecting the Ethereum Foundation to roll back the chain, but I suspect it’s already too much of a mess to do it cleanly,” Song added.

Meanwhile, Ethereum supporter Adriano Feria introduced an alternative perspective. He argued that Bybit could have avoided this situation by using a Layer 2 (L2) solution with conditional reversible transactions.

According to Feria, blockchain technology needs some form of reversibility to ensure real-world adoption.

“Whether through social recovery or another pre-determined, immutable, and transparent decision-making process, real-world mass adoption will not work without reversible transactions. Without this capability, transactional activity will inevitably gravitate toward TradFi systems that already provide it,” Feria stated.

This debate raises a fundamental question for Ethereum: should it prioritize immutability or intervene in extreme cases?

While some see a rollback as a necessary response to an unprecedented loss, others fear it could undermine the core principles of decentralization. Ethereum’s next steps will likely shape its long-term credibility and trust within the crypto space.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Berachain (BERA) Falls 15% After Recent Rally Surge

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Berachain (BERA) is down almost 15% in the last 24 hours, with its market cap now at $778 million, although its price remains up nearly 20% over the past seven days. This sharp pullback comes after a strong rally between February 18 and February 20, when BERA reached levels above $8.5.

BERA’s Relative Strength Index (RSI) has dropped from overbought levels, signaling a loss of bullish momentum, while its Directional Movement Index (DMI) shows growing bearish pressure. As BERA navigates this correction phase, it faces key support at $6.1, with potential resistance levels at $8.5, $9.1, and $10 if bullish momentum returns.

BERA RSI Is Dropping Steadily After Touching Overbought Levels

Berachain Relative Strength Index (RSI) is currently at 50.6, down sharply from 86.7 just two days ago when its price surged above $8.5. RSI is a momentum oscillator that measures the speed and change of price movements, ranging from 0 to 100.

It is commonly used to identify overbought or oversold conditions, with values above 70 indicating overbought levels and below 30 suggesting oversold territory.

The steep decline in BERA’s RSI reflects a significant loss of bullish momentum after reaching overbought levels above 86, where a correction was likely.

BERA RSI.
BERA RSI. Source: TradingView.

With RSI now at 50.6, BERA is in a neutral zone, suggesting that buying and selling pressures are relatively balanced.

This could indicate a period of consolidation as the market digests recent gains. If RSI continues to decline below 50, it could signal increasing bearish momentum. This could lead to a further price drop for BERA.

Conversely, if RSI stabilizes and begins to rise, it could suggest renewed buying interest and a potential recovery in Berachain price.

BERA DMI Chart Shows Buyers Are Losing Control

Berachain Directional Movement Index (DMI) chart shows its Average Directional Index (ADX) currently at 50.5, after peaking at 60.2 yesterday, up from just 13.3 five days ago. ADX is an indicator used to measure the strength of a trend, regardless of its direction, ranging from 0 to 100.

Values above 25 typically indicate a strong trend, while values below 20 suggest a weak or sideways market. The sharp rise in ADX reflects a significant increase in trend strength, confirming that BERA has been experiencing strong directional movement recently.

BERA DMI.
BERA CMF. Source: TradingView.

Meanwhile, BERA’s +DI is at 24.4, down from 48.4 two days ago, indicating weakening bullish momentum. Meanwhile, -DI has risen to 15.1 from 4.9, suggesting growing bearish pressure.

This shift signals that the bullish trend that drove prices higher is losing steam, and selling interest is beginning to increase.

If -DI continues to rise above +DI, it could indicate a bearish crossover, signaling a potential reversal or deeper correction in BERA’s price. However, if +DI stabilizes and moves upward again, it could suggest a continuation of the uptrend, albeit with reduced momentum.

Will Berachain Fall Below $6 Soon?

Berachain surged 53% between February 18 and February 20, pushing its price above $8.5 after the coin struggled following its airdrop. However, after this sharp rally, BERA entered a correction phase and is currently down almost 15% in the last 24 hours.

This pullback suggests profit-taking and a shift in market sentiment as buyers hesitate to push prices higher. If the downtrend continues, BERA could soon test the support at $6.1, and a break below this level could lead to a further decline towards $5.48, reflecting increased selling pressure.

BERA Price Analysis.
BERA Price Analysis. Source: TradingView.

On the other hand, if Berachain can regain its bullish momentum from a few days ago, it could rise above $8.5 again, potentially testing the next resistance levels at $9.1 or even $10.

To confirm this bullish scenario, Berachain would need to see renewed buying interest and strong upward momentum. If buyers can defend key support levels and push the price above resistance zones, it could indicate the continuation of the uptrend.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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