Be cautious with newly launched cryptocurrencies, often called "VC tokens," as they frequently experience significant selling pressure right after their debut. This price drop occurs because early investors and airdrop recipients often sell their tokens to secure profits. The upcoming launch of Monad is a prime example, with a high initial liquid supply of 10-11% expected at its launch. A significant price dip is anticipated for Monad shortly after it starts trading due to this expected sell-off. Consider waiting for this potential post-launch dip to find a more favorable entry point rather than buying immediately.

"VC Tokens" (Investment Theme)

• The speaker advises caution regarding cryptocurrencies that have significant funding from pre-sales and large airdrops, which are broadly categorized as "VC tokens".
• The primary risk identified is immense selling pressure immediately after the token launches on an exchange.
• This pressure comes from pre-sale buyers and airdrop recipients who often sell their newly acquired tokens to lock in profits, which can drive the price down.

Takeaways

• Be cautious with new token launches: Before investing in a newly launched token, research its tokenomics, specifically how much of the supply was allocated to early investors and airdrops.
• Potential Strategy: A large initial liquid supply can lead to a price drop. Investors might consider waiting for this initial sell-off to conclude before entering a position, as it could provide a better entry point.

Monad

• Monad is presented as a specific example of a high-profile token launch that fits the "VC token" profile.
• The speaker's research suggests that 10% to 11% of Monad's total supply is expected to be liquid and available for trading right at its launch.
• A significant portion of this liquid supply is expected to come from airdrops and pre-sale investors.
• The speaker anticipates a "decent dip right out of the gate" for Monad's price due to the expected selling pressure from these early holders. This effect may be amplified by a launch on a major exchange like Coinbase, which provides easy liquidity for sellers.

Takeaways

• Short-term bearish sentiment: The immediate outlook for Monad's price upon launch is considered bearish due to the high initial supply.
• Actionable Insight: Investors interested in Monad should be cautious about buying it immediately upon its trading debut. Waiting for the potential initial dip to occur may present a more attractive entry price.