Crypto Project Yellow Returns $8 Million to Early Investors, Ditches Venture Capital

Crypto infrastructure project Yellow has made a significant move by returning more than $8 million to early investors, signaling a shift away from traditional venture capital funding. According to co-founder Alexis Sirkia, the decision was driven by a need to protect the project's long-term vision and maintain alignment with its user base.

Sirkia stated that many venture participants were not aligned with the project's goals, pointing to industry practices such as early selling and hedging strategies that can put downward pressure on token prices and erode trust among users.

The restructuring leaves only a small portion of tokens held by external investors, with the majority now tied to the project's community, team, and ecosystem participants. This move is intended to ensure that ownership and incentives within the network are concentrated among builders and users rather than financial backers.