this has been my suspicion that it&#x27;s a game of hot potatoes where the goal is to pass it to the next sucker for profit. Almost like a Ponzi scheme where the last guy to buy the company bears all the risks, often the public IPO market, while the train of VC and underwriters have already made their money.<p>The guys who work for VC has to make number of investments and it&#x27;s not like investing in the stock market, it&#x27;s far far riskier and uncertain (hence the huge returns). So it makes sense that they would gravitate towards low risk bets by betting on momentum to piggyback on.<p>This explains why there&#x27;s crowding towards &#x27;hot &amp; flashy&#x27; startups on techcrunch and not as much to individuals focused on technological innovation. This crowding naturally leads to unicorns with unsound valuations that I&#x27;ve been qustioning.<p>The comments on HN after some hiatus is starkly different than those of 2014 or 2015. In 2014 I said the bubble will pop and I was ridiculed and downvoted to hell. In 2015 more people agreed and now majority of the comments are people ringing alarm bells now.<p>I think the coming years where unicorns drop left &amp; right, we will also witness the beginning of the end for Twitter &amp; Facebook and towards a decentralized, peer to peer, cryptographic replacement.