What Are the Potential Downsides of Raising Money Too Quickly?

Rapid fundraising in crypto projects often leads to significant token dilution, reducing the value and ownership percentage for existing holders. It can also inflate project valuations prematurely, creating unrealistic expectations and pressure to deploy capital quickly, which may lead to poor, rushed execution or unsustainable spending.

For derivatives trading, quick, large capital infusion often translates to excessive leverage, magnifying potential losses during volatile market swings.