VC Investments in Crypto Slow Amid Industry Shift
CryptoNewsTerminal Staff09 Aug, 2024
VC Investments in Crypto Slow Amid Industry Shift
Venture Capital Investments in Cryptocurrency Slow Down According to Adam Cochran, partner analyst at blockchain investment firm Cinneamhain Ventures, venture capital (VC) investments in cryptocurrency have recently slowed down. He attributes this to the fact that VCs can now mitigate risks in startup investments simply by holding Bitcoin (BTC) and Ethereum (ETH) in the medium term. VCs have been actively investing in the crypto industry during the last crypto cycle (2020-2023). However, as areas such as NFTs, DeFi, and Layer 2 reach the end of their expansion, it is unclear where the next stage of growth will come from. This uncertainty is contributing to the slowdown in VC investments. Despite the slowdown, Cochran believes that the crypto industry is still in its early stages and has significant growth potential. He notes that the underlying technology is sound and that there are many talented entrepreneurs working in the space. He expects VC investments to pick up again once the next wave of innovation becomes clear.
