End of VC monopoly: How crypto crowdfunding disrupts

Crypto crowdfunding platforms are breaking venture capital’s hold, giving both institutions and communities a bigger role in funding web3.

For decades, venture capital firms held an iron grip on technology funding. In crypto especially, their allocations often arrived with steep discounts and lockups, sidelining retail investors and narrowing access. Today, however, that dominance is eroding. Large web3 startups are increasingly bypassing the traditional VC path in favor of institutional and community-driven crowdfunding platforms that are proving more scalable, more transparent, and often more effective.

Institutional-grade crypto crowdfunding platforms like CoinList and Republic now count close to 10 million users between them and together hold valuations exceeding $10 billion as of their most recent raises. Since 2017, they’ve facilitated over 30 projects, helping secure more than $1 billion and propelling well-known names such as Solana, Filecoin, and Flow. These venues don’t just provide funding, they also bring massive communities into blockchains, create global visibility, and compress the timeline for projects to reach genuine network effects.

Oversubscribed offerings, stronger contribution frameworks, and growing frustration with opaque VC allocations that frequently leave retail investors out are accelerating the shift. With more than 100 token sales projected in the latter half of 2025 and into 2026, large-scale crypto crowdfunding is solidifying as a credible pathway for token launches aiming for top-100 CoinMarketCap status.

Mega launches set the tone

Recent cycles have shown how expansive, multi-platform crowdfunding can propel a project forward.

WalletConnect’s WCT token secured $10 million across multiple venues, including Bitget’s Launch X, CoinList, and Cobie’s Echo, in one of the year’s largest multi-platform raises.

CoinList, originally spun out of AngelList, hosted sales such as Obol, Bitlayer, and DoubleZero, using a karma-based rewards mechanism to allocate participation.

Republic, backed by Galaxy Digital, surpassed $120 million raised through its launchpad.

Echo rolled out its modular Sonar framework, enabling compliance-ready, self-hosted sales customized for early-stage ventures.

These launches highlight a move away from small, insular rounds toward global, community-first campaigns where thousands of contributors, not just a handful of funds, lay the groundwork.

SocialFi and the rise of community-centered crowdfunding

While institutional launchpads demonstrate compliance and scale, SocialFi platforms reveal how reputation, engagement, and virality increasingly shape fundraising. They show that who you are and how you participate can matter as much as the size of your check.

Kaito Capital Launchpad pioneered reputation-based allocations combined with AI analytics. Its debut sale, Espresso, applied allocation caps, staged vesting, and redirected platform fees via the KAITO token, now listed on Binance and valued at close to $300m.

Pump.fun, built on Solana, showcased the raw pull of virality, enabling thousands of meme-token launches that spread across social channels before exchanges caught on. Controversial or not, it proved that attention alone can power fundraising. The PUMP token climbed to nearly $3 billion in market cap without any centralized exchange listing.

Together, these SocialFi experiments foreshadow a landscape where token distribution relies less on passive capital and more on influence, community momentum, and active participation.

Beyond SocialFi: The death of the VC?

If Kaito and Pump.fun showed the potential of SocialFi dynamics, one project is pushing even further. SeedList, based in Singapore, seeks to remove venture capital entirely, reallocating those shares to KOLs, ecosystem funds, centralized exchanges, and retail micro-influencers.

Instead of lotteries or staking minimums, SeedList uses AI-powered, merit-based allocation that weighs technical contributions, KOL reach, and community engagement. By rewarding active participants, especially from underserved non-U.S. markets, it aims to build a fairer, more global model.

SeedList’s design builds on but diverges from CoinList and Republic. As co-founder Brijesh Patel explained at a closed investor session:

“The days of the old-school VC firm are numbered. In crypto, there are simply better options. We can provide projects with the same industry connections and capital, plus stronger community and global brand reach, with far less time wasted by founders doing pitches and sitting in board meetings. For contributors, we can give larger allocations, more ownership, and better interaction with the projects they want to support. In fact, by removing passive venture capital and reallocating it to strategic partners, exchanges, and retail microinfluencers, we believe launches can be five to ten times more impactful in market value, blockchain adoption, and brand reach.”

SeedList is supported by experienced crypto builders and investors. Brijesh Patel is a former partner at Pronomos Capital, backed by Marc Andreessen (a16z), Balaji Srinivasan (Coinbase’s CTO), the Winklevoss twins (Gemini; from the early Facebook era), and Naval Ravikant (founder of AngelList, parent of CoinList). Rosa Pagani, another co-founder, is CEO of WhiteBIT Australia, part of Europe’s major exchange WhiteBIT Global, which has over 8 million users.

CryptoSheldon, a longtime Solana ecosystem developer and advisor, emphasized the philosophical drive behind the project:

“Crypto venture capital has evolved to benefit only a privileged few. We want to fix that. Our goal is to reward everyone in the crypto value chain: developers, advisors, exchanges like Bybit and Binance, ecosystem foundations like Solana and Avalanche, and influencers like Mr. Beast who can reach tens of millions on YouTube or X. Even microinfluencers and retail investors can push adoption forward if given a seat at the table and an incentive to get the word out.”

He continued: “Platforms like Echo and Kaito already proved this dynamic works. Echo sold $500k of WalletConnect in 11 seconds thanks to AI and community momentum. In the years ahead, we believe SeedList, alongside Echo, Kaito, and CoinList, will be the go-to launch path for projects aiming at top-100 status. After decades of inequality in tech investing, it’s time someone addressed what we consider to be the elephant in the room in crypto.”

What comes next

By mid-2025, the boundaries between launchpad, exchange, and venture firm are blurring. Both institutional and SocialFi crowdfunding models are integrating compliance, analytics, and liquidity, allowing projects to raise significant sums while cultivating engaged global user bases.

Several notable token launches are already lined up for Q3–Q4 2025, including DePIN networks, AI-native protocols, and L2 infrastructure. With smarter distribution models and a stronger focus on real participation, 2026 may mark a decisive turn: crowdfunding, not venture capital, could become the default route for ambitious crypto founders.

And leading that shift are CoinList, Republic, Echo, Kaito, Pump.fun and, if its bold experiment pays off, SeedList.