# Problems ![](/files/ZOyyKCc15kmRu0YonaAn) ### Venture Capitals \- While Web 3.0 is becoming more and more popular, VentureCapital's business model remains the same. On the contrary, it is a business model where they buy tokens at a low price and sell them to market participants at a high price. This is a far cry from the development of a healthy ecosystem. ### Projects \- Projects give their tokens to VCs at low prices because they want to raise money and they want to be backed by well-known venture capitals.\ Projects that give away their tokens at a low price tend to see the price drop significantly in the short term as VCs sell the tokens on the secondary market, and community members tend to leave when the price keeps dropping. ### LaunchPad Platform \- Currently, there are many Launchpad platforms in the market that are provided by incubators and VCs. The projects that offer these Launchpads require a token from the project itself in order to access it, but this token has very little utility.\ Basically, the token only serves as a ticket to participate in the IDO, so when the market changes from a Bull market to a Bear market, the ROI for participants in the IDO will not be high. As a result, the value of the token itself tends to drop quickly. ### User \- Users hold tokens to participate in IDO and participate in IDO. When the market is a Bull market, the ROI is high, but when the market is a Bear market, the return on participation in IDO is not expected.\ This is because the literacy level of the participants is not that high and the due diligence of the investment is lax, so they often invest in the projects brought by the platform without understanding the reason and incur losses. As mentioned above, the lack of token utility also causes the IDO token to fall, which increases the possibility of double losses. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.capital-dao.xyz/project-vision/problems.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.