Top Crypto VCs Remain Active Despite Market Downturn, Warns Messari CEO;
Ryan Selkis, the Founder and CEO of Messari, recently spotlighted 33 investors who’ve been hyperactive in the crypto sector this year despite the ongoing market downturn. Coinbase Ventures, Animoca Brands, and NGC Ventures are at the forefront of these investments, which have made significant contributions to seed-stage crypto and blockchain companies. However, Selkis also warns that the worst may come in the crypto market.
First on Selkis’ list of “top 20 Chad deployers” is Coinbase Ventures. The corporate venture capital arm of Coinbase has made eye-catching 329 investments in more than 295 companies. Moreover, their primary focus has been backing exchanges, dedicating $8 million in seed funding rounds.
Secondly, Animoca Brands, a VC firm specializing in metaverse and gaming, has invested around $5.5 million across 240 different entities. Significantly, their investments primarily target the gaming sector, championing digital property rights through NFTs.
Additionally, NGC Ventures, based in Singapore, has made 200 rounds of investment in more than 166 companies, amounting to $3 million. They focus mainly on web 3.0 infrastructure startups, with smart contract platforms receiving the most funds.
Several well-known VC firms like Andreessen Horowitz, Polychain Capital, Shima Capital, and Polygon are also on the list, making 180, 176, 169, and 97 investments, respectively.
Besides these investment trends, Selkis offered a cautionary note. He does not believe the prolonged downturn in the cryptocurrency market will end soon. Selkis suggests things could worsen, urging market participants to brace themselves for more challenges.
His Twitter post read, “We’re approaching max pain. Bear markets last longer and go deeper than we want them to. Need a couple of capitulations, then chop, then rebirth.” He claims that the current market sentiment is even bleaker than what he observed in 2019 and likens it to the dismal atmosphere in 2015.
Hence, while venture capital continues to flow into the crypto sector, the industry should also heed Selkis’ warning. There might need to be more than the commitment shown by top VC firms to buoy a market weighed down by broader economic forces and waning investor sentiment. Selkis’ remarks serve as a sobering reminder that despite some activity, the crypto market still faces an uncertain future.
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