Investors should be cautious regarding 0G Labs (Zero Gravity), an AI blockchain project, as its claimed $401 million raise is misleading. Only $13.7 million in fresh capital was raised, with the remaining $300 million being an "in-kind contribution" of $0G tokens from founders, valued at a $3 billion FDV. This structure, where founders contribute their own tokens at a high valuation to inflate the raise, is a significant red flag for potential investors.