06/04/2023
Funding Overhaul after FTX Fiasco.
VC and other investments into crypto companies fell 91% year over year in January.
One year marked the end of a historic bull market, while the other followed the devastating collapse of a massive crypto exchange, FTX.
VCs interviewed and primarily agreed on several crypto verticals of interest, and those don’t include centralized finance players.
Let's see what they actually include.
Infrastructure remained the most stable investment vertical in January, with the broad term referring to many facets of the crypto world.
This can range from inter-blockchain portals to onchain wallets and includes software innovations that will make digital identities feasible.
The misdeeds of FTX founder SBF and other executives have increased the calls for stricter regulation in the United States, which puts many startups in murky legal territory.
That’s why most VCs prefer to focus on decentralized, censorship-resistant protocols.
CoinDesk