Yellow Cuts Ties with Venture Capital, Returns $8M to Early Investors

Crypto infrastructure project Yellow has returned more than $8 million to its early investors, marking a significant shift away from traditional venture capital funding models. The move is seen as a response to growing concerns over misaligned incentives between early investors and broader communities.

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. 'Capital always comes at a cost, typically at the expense of relationships with the community of token holders,' Sirkia said. 'We refuse to let that happen at Yellow.'

Yellow's 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.