A new essay titled "D is for Dilution" argues that upcoming IPOs from SpaceX, Anthropic, and OpenAI will trigger significant capital destruction and mark the beginning of the next downturn in the AI sector. The author contends that retail investors purchasing shares at offering prices face substantial losses due to massive insider share unlocks, drawing parallels to early Zcash (ZEC) investor experiences. The analysis highlights a critical vulnerability in the current AI market structure: valuations are driven primarily by sentiment rather than fundamental metrics. According to the essay, once stock prices inevitably fall below their IPO levels due to dilution pressures, markets will interpret the decline as evidence of corporate misconduct or inflated projections, regardless of actual financial performance. This shift in perception could accelerate investor disillusionment across the broader AI trade. The piece further suggests this dynamic poses systemic risks to global equity markets, as deteriorating liquidity conditions may force a re-evaluation of AI-dependent asset prices before any potential government intervention or bailout occurs.