Cryptos crumble but VCs remain gung-ho on future prospects

moneycontrol.com:

According to a report compiled by financial services and investment management firm Galaxy Digital, Venture Capitalists (VCs) have invested over $10 billion in crypto startups in the first quarter of this year.

Just earlier this week, VC giant Andreessen Horowitz announced the close of a $4.5bn crypto fund that focuses on Web3 startups.

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Also, a group of former executives from Binance, one of the largest global cryptocurrency exchanges, announced a $100-million venture fund called Old Fashion Research earlier this week, to bring greater crypto adoption to growing markets like Latin America and Africa.

Singapore-based VC firm NGC Ventures also launched a $100-million fund dedicated to high potential Web3 projects and metaverse economies.

Experts say VCs bet on blockchain tech

According to experts, blockchain and not crypto, is the underlying reason for these investments, with crypto being one of the use cases of the blockchain. The possibilities of new use cases, Web 3.0, and accelerated adoption of blockchain technology - all add to the uptick in investments with scale, growth, and returns all on the horizon.

Roderik van der Graaf, Founder of Lemniscap, says the high degree of market volatility that crypto markets are currently experiencing can elicit fear among some investor categories and undercut overall ecosystem sentiment in the short run. However, VCs generally view the market landscape with a wider aperture and execute a consistent, measured approach to building their portfolios. Usually, a foundational market thesis guides their investment rationale.

van der Graaf, the founder of the investment firm specializing in crypto and