Crypto under "Ice Cold" VENTURE CAPITALIST

The prices of crypto assets are not the only thing that is cooling as the year ends. Venture capital investments also seem to be declining, but these things happen in a bear market and at least twice before they return as soon as the bulls take over.

Has VC dried for Crypto?

A recent dialogue on crypto twitter suggests that venture capital has cooled in crypto and the projects will require a new investment model. The general consensus of opinion of industry experts is that emerging technology is here to stay.

The debate was triggered yesterday by this tweet from an investor;

"From a friend of VC:" We are quite cold in cryptography. Crypto is more like Cleantech than a normal sector and less active in technology. Both are essentially new technology stacks that are based on a broad adoption of new business behaviors. "

The bad taste for many arose from the large number of symbolic projects that had little support or were direct scams. It was revealed that a large percentage of them were such, although there are still genuine and successful.

Many have also lost much of their investment funds due to the prices of paralyzed tokens. Which are still up to 90% below their highs when ICOs were executed or concluded. This will have resulted in a massive reduction and deceleration of the roadmaps, although the projects are still technically alive.

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 responded with;

“Blockchain and the Internet are two sides of the same democratization currency. One for information and data (internet), the other for currency and value (cryptography) ".

They will come back

Chris Burniske, a New York-based Placeholder VC partner, said the VCs recovered mass during the recent bull markets and that this is likely to happen again;

"And yet they will return quickly during the next bull market and desperately ask for meetings to" catch up, "as they did in 2013 and 2017."
He added that work continues for many crypto projects during bear markets. But the VCs ignore this with a greater focus on the financial gains obtained during bull markets.

Last year's bear market was difficult, and it may not be over yet. But what cannot be ignored is that from a limit of $100 billion in December. It increased to almost $ 400 billion in just six months. This nearly 300% bomb has not even been a true bull market for most cryptocurrencies, as it was largely the gain of Bitcoin.

Investors accustomed to making quick money are likely to be disappointed with the current crypto climate. But those deeply involved in the industry have confirmed that they are here to stay.