According to @NFT5lut, the Web3 industry is being strangled by 'Ponzi VCs' who prioritize rapid exit liquidity over sustainable product development, creating a system of 'rolling Ponzi schemes' that demand a constant inflow of new buyers. The author warns that this model, which often features short vesting schedules for insiders, erodes trust, drains talent, and invites stricter regulatory scrutiny from bodies like the SEC and through frameworks like the EU's MiCA. Despite these systemic risks, key crypto assets show market strength; provided data indicates Solana (SOL) rose over 4% to approximately $152.99 and Ethereum (ETH) gained nearly 2% to trade around $2546.00. The analysis contrasts this flawed funding model with the potential of unified innovation at the intersection of AI and blockchain, highlighting principled leaders building long-term value. The author urges a shift in capital allocation towards projects with genuine utility and longer lockup periods to reclaim Web3's potential from exploitative funding practices.