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

Crypto project Yellow has returned over $8 million to its early investors in a move that signals a shift away from traditional venture capital funding.

The refund, disclosed by co-founder Alexis Sirkia, accounts for nearly 100% of the initial raise and leaves only a small portion of tokens held by external investors.

Sirkia said 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,' he stated.

The move is seen as an attempt to address recurring criticisms in crypto markets, where early-stage investors often hold significant token allocations that can later be sold into public liquidity.