According to TechFlow, MAP Protocol core developer James XYC said in a post that the valuation of Web3 seed round projects should not exceed $3 million. The current lack of new funds in the industry has led to overvaluation of projects. Founders should not apply the valuation standards of traditional VC investments to Web3 projects, because Web3 valuations are still too high.
The development cost of Web3 is relatively low, and the development of a DApp usually only requires 3-5 people, with a cost between $80,000 and $200,000. However, some projects are valued at $200 million or even $50 billion, which is difficult to explain economically.
The community issuance model such as Bitcoin is successful because it combines funding with community growth and does not rely on VC. The TO VC model leads to the community being dominated by speculators. Once the bull market ends, it is difficult for VC to exit and the development of the project is hindered.
He believes that Web3 projects should reconsider their valuation criteria, learn from the successful model of Bitcoin, and combine funding with community development. The TO VC model may no longer be applicable.
