DWF Labs' Investment and Trading Strategies Spark Controversy

At the beginning of this year, DWF Labs quickly became the focus of the crypto industry. The company claimed to have invested in 470 projects within 16 months, establishing partnerships with about 35% of the top 1000 tokens by market capitalization. However, this scale of investment has raised questions about its trading methods.

The survey shows that DWF Labs' investments mainly take the form of over-the-counter transactions, rather than traditional financing rounds. The company offers three main services: liquid token investments, locked token investments, and market-making services, which are often executed in bundled transactions.

In liquid token investments, DWF usually purchases tokens at a discount of 5-15%, with phased purchases lasting from one to several months. This allows the project party to effectively cash out and promote large investments.

The contract period for DWF's market-making services typically exceeds one year. The company will receive project token loans and has the option to purchase tokens at the price set at the time of the agreement. However, DWF sets the exercise price significantly higher than industry norms, which means that if the token price surges, DWF will achieve higher returns.

It is worth noting that DWF often discusses potential price trends when vying for clients. Early promotional materials from the company mentioned that the price could be driven up by adjusting algorithms. Although this kind of wording seems to have ceased recently, several sources have confirmed that DWF executives still mention price management in communications.

For venture capital, DWF typically seeks larger discounts, up to 50%, with a lock-up period of 1-2 years.

Despite the controversy, some partners expressed satisfaction with DWF's services. Projects such as the Algorand Foundation, EOS Network Foundation, and Floki have all given positive feedback.

Looking to the future, DWF is advancing its cryptocurrency company incubation program and plans to create a compliant cryptocurrency over-the-counter trading market. Company founder Andrei Grachev acknowledged that the company "is not ideal", but also stated that DWF has raised the standards for market-making firms, which he is proud of.