Venture Capitalists Are ‘Ice Cold On Crypto’ Until Next Bull Run: Report

The venture capital market and venture capitalists are not very keen on crypto as the latest cryptonews show, mostly because of the volatility and the pressure on the markets. In a bear market like the one we are seeing now, venture capital is definitely not a game that Bitcoin or other cryptocurrencies can qualify to join.

The big question we need to ask is – “Are venture capitalists drying up for crypto?”

According to a recent dialog on Twitter, the entire industry 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 technology is here to stay.

The debate was actually sparked by this tweet yesterday from an investor:

“From a VC friend: “We are pretty ice cold on crypto. Crypto is more like Cleantech than a normal not-hot sector within tech.  Both are essentially brand new tech stacks that are predicated on broad adoption of new business behaviors.”

As it stands, venture capitalists have gone cold on crypto and a huge percentage of them revealed that the obvious reason for that is the current bear market. Many of the have also lost a lot of their investments due to crippled token prices which are still at around 90% down from their highs when the ICOs were either running or were concluded. This is what triggered the downsizing and decelerating of roadmaps though the projects are still technically alive.

For now, investors and venture capitalists are primarily concerned with profits and returns. They ignore the fact that the crypto space is a multiverse of different disruptive technologies. According to Byzantine Labs:

“Blockchain and the internet are two sides of the same democratization coin. One for information and data (internet), the other for currency and value (crypto).”

Another partner at the New York based Placeholder VC named Chris Burniske also spoke about venture capitalists and their lack of interest in crypto, stating that bull markets need to ignite the interest and that this is likely to happen again.

“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.”

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

— Chris Burniske (@cburniske) October 22, 2019

Burniske also added that work continues for many crypto projects despite the bear markets – but venture capitalists often rush and ignore this fact with a greater focus on the financial gains made during bull markets.