Dragonfly Capital’s $650M Fund Highlights Token Unlock Risks and VC Shift Toward Fintech Rails

Dragonfly Capital closed its fourth $650 million fund in a venture environment described as a “mass extinction event,” signaling that institutional backing for select crypto managers persists. Data from Binance Research, Keyrock, Animoca Brands Research, Memento Research, and Tokenomist show how low-float, high-FDV token launches and large unlock schedules have driven systematic dilution and price pressure. While some projects like Backpack, Jupiter, and USDai experiment with KPI-based unlocks, revenue-linked buybacks, or fully transparent token sales, others face heavy overhang from insider unlocks and thin liquidity. Whether new VC capital flows into token-heavy structures or fintech rails without tokens will shape how much of this funding actually benefits liquid crypto assets.