• News
    • Bitcoin
    • Altcoins
  • NFT
  • Metaverse
  • Analysis
  • Regulation
  • Learn
  • Market Cap
What's Hot

Senators grill federal officials over lack of oversight into SVB, Signature Bank collapse

2023-03-28

Disney Metaverse Division Reportedly Scrapped

2023-03-28

CFTC ‘Pretty Confident’ in Case Against Binance, Says Chairman Rostin Behnam

2023-03-28
Facebook Twitter Instagram
  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
Facebook TikTok Instagram YouTube
CryptoNewsMetaverse
  • News
    • Bitcoin
    • Altcoins
  • NFT

    U.S. IRS Considers Taxing NFTs Like Other Collectibles

    2023-03-21

    Meta Shuts Down NFT Project to Focus on FinTech and Content

    2023-03-14

    Solana’s Solend V2 Release, Is SOL Price $50 Next?

    2023-03-06

    Amazon NFT Marketplace To Reportedly Launch Next Month

    2023-03-06

    Blur Coin Under Fire As Allegations Of Wash Trading Emerge

    2023-03-01
  • Metaverse

    Disney Metaverse Division Reportedly Scrapped

    2023-03-28

    Animoca Denies $200M Metaverse Fund Cut

    2023-03-27

    Metaverse Trading Hits All-Time High

    2023-03-24

    Exploring the Metaverse: A Guide to Investing in Metaverse Stocks

    2023-03-20

    A Guide to Virtual Land Staking in the Metaverse

    2023-03-20
  • Analysis

    DOJ Officially Seizes Over $456,000,000 Worth of Robinhood Shares Tied to FTX Founder Sam Bankman-Fried

    2023-01-08

    Mark Cuban Makes Prediction on Next Crypto ‘Scandal,’ Warns of Potential Implosion if Exposed: Report

    2023-01-08

    Binance Listings Cause Crypto Assets To Spike an Average of 41%: New Research

    2023-01-08

    Bitcoin Whales Unloaded BTC As Market Reversed and Parked Their Profits in This Crypto Asset Class: Santiment

    2023-01-07

    Crypto Analyst Predicts Breakout for AI-Focused Altcoin, Updates Outlook on Ethereum and Lido DAO

    2023-01-07
  • Regulation

    Senators grill federal officials over lack of oversight into SVB, Signature Bank collapse

    2023-03-28

    CFTC ‘Pretty Confident’ in Case Against Binance, Says Chairman Rostin Behnam

    2023-03-28

    OKX becomes latest exchange to apply for Hong Kong VASP license

    2023-03-28

    Balaji Srinivasan Says Millions of Worried Depositors Could Wire Money to Bitcoin As Banks Get Too Big To Escape

    2023-03-28

    Binance CEO CZ reveals copy of letter to US Senators – weeks before CFTC lawsuit

    2023-03-28
  • Learn

    Chart Patterns Cheat Sheet For Technical Analysis

    2023-03-21

    Best NFT Wallets in 2023

    2023-03-21

    What are Dapps (Decentralized Applications) Crypto?

    2023-03-17

    How to Short Sell Bitcoin

    2023-03-17

    Why Decentralized Exchanges Are On Rise? Can INNODEX Surpass Binance and Uniswap?

    2023-03-15
  • Market Cap
CryptoNewsMetaverse
Home»Crypto could solve venture capital’s due diligence problem — VC exec

Crypto could solve venture capital’s due diligence problem — VC exec

2023-01-19No Comments3 Mins Read
Share
Facebook Twitter LinkedIn Pinterest Email

Venture capitalists battling with the difficulties of proper crypto firm due diligence should be looking at getting back to the basics — to “trust the chain,” a crypto-focused venture fund executive argues. 

Speaking to Cointelegraph, John Lo, managing partner of Digital Assets at Recharge Capital — a $6 billion fund with crypto and decentralized finance (DeFi) projects in its portfolio — said that FTX shook the “confidence in this industry.”

“There will be a lot of soul-searching,” he said. According to Lo, due diligence has always been a problem in the venture space, even outside of crypto.

He said the action plan taken by crypto venture capitalists in response to the FTX collapse will be a crucial deciding factor for either an effective recovery or a deepening of the industry crisis.

However, Lo argues that the crypto industry provides the world with a step toward a solution — a public and immutable ledger — arguing:

“Crypto VCs specifically need to go back to crypto principles – trust the chain. We’re going to see a lot more businesses operate on-chain, and VCs rely on on-chain data to perform more thorough diligence.”

“We’re going to see better tools to distill and track on-chain data, in fact, we may even see entire on-chain businesses wrapped into NFTs [nonfungible tokens] and sold, optimizing arduous M&A processes,” he added. 

The total funding raised in the crypto venture capital last year exceeded 2021, with $30.3 billion secured by crypto projects, Cointelegraph Research’s VC Database shows.

The last quarter of 2022 saw the lowest capital inflow to the industry in two years, with only $2.8 billion allocated across 371 deals, according to a Jan. 1 tweet from Alex Thorn, head of research at Galaxy Digital.

Q4 2022 was the slowest for crypto vc investing in 2 years, with only $2.8bn allocated across 371 deals.

in total, 2022 saw $30.8bn invested by VCs, compared to $33bn in 2021.

likely crypto vc will be muted for several quarters w/ rates, macro, & cryptoasset price headwinds pic.twitter.com/RaVGNBWzVa

— Alex Thorn (@intangiblecoins) December 31, 2022

FTX’s meltdown caused a negative sentiment across the industry, but the funding decline also reflects the macroeconomic scenario, Lo said.

“A high-interest environment does not bode well for risk-on industries. Venture usually lags, and we’re likely to see markdowns,” noted Lo. He believed as 2023 goes forward and the macroeconomic landscape stabilizes, the industry will regain stability as well.

“It is probably a good thing bad actors and bad practices are shaken out earlier rather than later.”

As the year progresses, Lo predicted the industry will see more capital deployments than inflows with an emphasis on on-chain products and services rather than tokens.

A number of challenges that surfaced during the bull market will likely be in the spotlight too, including user experience, wallets, user onboarding and compliance.

“Key narratives are forming regarding blockchain scalability, liquid staking, real-world assets, decentralized exchanges and platforms,” Lo stated.

“These optimizations after a frenzied period of experimentation will be key to growth, and as always, there are teams working in stealth on groundbreaking products yet to be seen,” he said, adding:

“Crypto is alive and well.”

Source link

Capitals Crypto diligence due exec problem solve Venture
Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Coinbase Executive Says US Government Squandering Lead in Technology With Lack of Crypto Regulatory Clarity

2023-03-27

CFTC Goes After Binance and Changpeng Zhao With Lawsuit, Bitcoin (BTC) and Crypto Markets Get Rocked

2023-03-27

US Prosecutors Slam Terra (LUNA) Founder Do Kwon With Eight Counts of Fraud for 2022 Crypto Collapse

2023-03-26

Crypto Analyst Nicholas Merten Says Fed Money Printing Won’t Spark New Bitcoin (BTC) Rally – Here’s Why

2023-03-26
Add A Comment

Leave A Reply Cancel Reply

Top Posts

Is ENJ catching up to metaverse heavy-weights like MANA and SAND

2022-03-25

How Ethereum’s [ETH] liquidity can help it retain its position in the market

2022-10-24

Binance still serving non-sanctioned Russians while seeking clarity on EU crypto regulations

2022-10-28

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

Our mission is to develop a community of people who try to make financially sound decisions. The website strives to educate individuals in making wise choices about Cryptocurrencies, NFT, Metaverse and more.

We're social. Connect with us:

Facebook Instagram YouTube TikTok
Top Insights

Senators grill federal officials over lack of oversight into SVB, Signature Bank collapse

2023-03-28

Disney Metaverse Division Reportedly Scrapped

2023-03-28

CFTC ‘Pretty Confident’ in Case Against Binance, Says Chairman Rostin Behnam

2023-03-28
Get Informed

Subscribe to Updates

Get the latest news and Update from Cryptonewsmetaverse.com about Crypto, Metaverse and NFT.

  • Contact
  • Terms & Conditions
  • Privacy Policy
  • DMCA
© 2023 Cryptonewsmetaverse.com. Designed by ProdigitalX.

Type above and press Enter to search. Press Esc to cancel.

  • bitcoinBitcoin(BTC)$27,403.001.44%
  • ethereumEthereum(ETH)$1,779.783.82%
  • USDEXUSDEX(USDEX)$1.07-0.53%
  • tetherTether(USDT)$1.00-0.03%
  • binancecoinBNB(BNB)$313.821.54%
  • usd-coinUSD Coin(USDC)$1.00-0.05%
  • rippleXRP(XRP)$0.5413.32%
  • cardanoCardano(ADA)$0.3786269.25%
  • Lido Staked EtherLido Staked Ether(STETH)$1,775.593.80%
  • dogecoinDogecoin(DOGE)$0.0743062.48%