Their Involvement in dex projects valid or invalid

[KiaKia]

I have two good questions today that need some opinions and answers,  I have thought this through and I still can't rap this around my head, here is the definition of the word decentralized from wiki.




Are venture capital investors not banks and centralized investing companies? yes or no?

If Yes, is it right to bring in venture capital into a decentralized crypto project? Wouldn't this make the name 'decentralized' of a project invalid?

Also, I have seen posts about some saying that Bitcoin is the only true decentralized project, how valid is this? Out of like, thousands of crypto projects we have in this space, how is it that only Bitcoin is fully decentralized?

[Upgrade00]

If Yes, is it right to bring in venture capital into a decentralized crypto project? Wouldn't this make the name 'decentralized' of a project invalid?

The type of investors does not determine the the of asset that it is. Anyone is free to buy Bitcoin, that doesn't affect the decentralization of Bitcoin.

Also, I have seen posts about some saying that Bitcoin is the only true decentralized project, how valid is this? Out of like, thousands of crypto projects we have in this space, how is it that only Bitcoin is fully decentralized?

Bitcoin is the only currency which has a anonymous creator who cannot effwct changes arbitrarily on the network. Everything done is happens through consensus and must be accepted by majority.

[Lucius]

~snip~
Also, I have seen posts about some saying that Bitcoin is the only true decentralized project, how valid is this? Out of like, thousands of crypto projects we have in this space, how is it that only Bitcoin is fully decentralized?

You are asking a beginner's question, and you have been on the forum for almost 1 year - which leads us to the conclusion that in all that time you have not been able to understand the basics. Bitcoin is not only decentralized, but has gained great trust among people because, in spite of everything, it adheres to the basic principles envisioned by its creator.

If you want to invest in some so-called decentralized projects, that's not a bad thing, you might even be lucky and find one that will succeed - but behind most of those projects are people whose primary goal is only quick profit, regardless of who will suffer along the way.

[Coyster]

If Yes, is it right to bring in venture capital into a decentralized crypto project? Wouldn't this make the name 'decentralized' of a project invalid?

Bitcoin is a decentralized network, and not a centralized business, company (or startup), thus venture capital is inapplicable to it. Venture capital has to do with investors funding 'novel' or precocious businesses/companies for returns and equity (ownership), this definition proves how inapplicable it is to Bitcoin, you do not fund Bitcoin, you buy it, either to hodl or to spend it, and nobody gets any form of ownership in the Bitcoin network. Notwithstanding, institutional investors buy quite a lot of Bitcoin for their personal profit and use, but in the network they are as equal as someone who owns just 0.001 Bitcoins.

Also, I have seen posts about some saying that Bitcoin is the only true decentralized project, how valid is this? Out of like, thousands of crypto projects we have in this space, how is it that only Bitcoin is fully decentralized?

DYOR, and you'd find out why!

[Crypt0Gore]

Venture capitals are private companies, they are no tied to centralised or decentralised environment,  they can do as they see fit or invest in any project if the developers demands it.

Bitcoin is a complete decentralised project that practice decentralization because its 100% true decentralized, there are other decentralised projects that claimed to be decentralized but it's all a lie, they use that to lure people who really can't tell the difference,  and when some happens you will see them not defending themselves as true decentralized project, they will quickly sheds their skin like a snake.

[cryptoaddictchie]

Some angel investors are probably investing on a non anonymous project cause they need such thing to be transparent on their co investors. But Ive seen some VC that investing on anon or a very risky project. It depend on the apetite of certain group. But if you a conservative investor youll be careful on picking something you risk your money right?

how is it that only Bitcoin is fully decentralized?

Cause it is. Some projects have allotment of tokens on different field like reserve, giveaway tokens and team or advisor. Bitcoin doesnt have that on the sideline but hence transparent when they did or give tokens to anyone.  Moreover their focus is not to earn but to spread and share how to use bitcoin. Its like a mineral that naturally blooming without any effort.

[joniboini]

If Yes, is it right to bring in venture capital into a decentralized crypto project? Wouldn't this make the name 'decentralized' of a project invalid?

Most of the time they use "decentralized" to refer to the non-custodial part of the project. For example, a "decentralized" exchange that does not hold any funds but just facilitates transfer between two wallets directly, launching a pool where users can deposit their tokens to gain interest that does not need a UI to manage it, etc. So, don't be misled by the term. Many projects use the same thing to refer to different things. Heck, I think I made a post just last week about this. I found one project who uses "decentralized" to describe their server locations, while their products are mostly centralized (need to deposit to their wallet, need to KYC, etc).

I don't know how VC or private entities make deals with start-ups, but as far as I know, most of these deals are only about getting tokens very early in a large amount so they can dump on retail investors later down the line. At the very least, they don't openly admit that their decision-making in key areas such as token unlock, exchange listing, change in protocol, etc need permission from their early investors. That being said, you should assume the worst-case scenario and stay away from projects like that for the long term.