Crypto asset prices are not the only thing cooling off as the year draws to a close. Venture Capital investments also seem to be declining but these things happen in a bear market and at least twice before they\u2019ve come running back as soon as the bulls take hold of things.<\/p>\n
A recent dialog on crypto twitter suggesting that venture capital has gone cold on crypto and projects will require a new investment model. The general consensus of opinion from industry experts is that the emerging tech is here to stay.<\/p>\n
The debate was sparked by this tweet<\/a> yesterday from an investor;<\/p>\n \u201cFrom a VC friend: “We are pretty ice cold on crypto. Crypto is more like Cleantech than a normal not-hot sector within tech.\u00a0 Both are essentially brand new tech stacks that are predicated on broad adoption of new business behaviors.”\u201d<\/p><\/blockquote>\n The bad taste for many will have emerged from the slew of token projects that had little backing them or were outright scams. A huge percentage of them were revealed to be such though the genuine and successful ones still exist.<\/p>\n Many have also lost a lot of their investment funds due to crippled token prices which are still as much as 90% down from their highs when the ICOs<\/a> were running or concluded. This will have resulted in massive downsizing and decelerating of roadmaps though the projects are still technically still alive.<\/p>\n Investors are primarily concerned with profits and returns and are ignoring the fact that the crypto space is a multiverse of different disruptive technologies. Byzantine Labs replied with;<\/p>\n \u201cBlockchain and the internet are two sides of the same democratization coin. One for information and data (internet), the other for currency and value (crypto).\u201d<\/p><\/blockquote>\n Partner at New York based Placeholder VC, Chris Burniske, pointed out that VCs retuned in droves during recent bull markets and this is likely to happen again;<\/p>\n “And yet they’ll rush back during the next bull market and desperately ask for meetings to “get up to speed,” just as they did in 2013 and 2017.”<\/p><\/blockquote>\n And yet they'll rush back during the next bull market and desperately ask for meetings to "get up to speed," just as they did in 2013 and 2017. https:\/\/t.co\/VHYsEF0NTT<\/a><\/p>\n — Chris Burniske (@cburniske) October 22, 2019<\/a><\/p><\/blockquote>\nThey\u2019ll Be Back<\/h2>\n
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