Sequoia Capital Partner Believes Lots of VCs Will Pull Back From Crypto

Shaun Maguire, a crypto spouse of Sequoia Capital, 1 of the task superior firms astir progressive erstwhile it comes to investments successful the cryptocurrency space, issued its sentiment connected the aboriginal of galore VCs investing successful crypto. To him, galore of the companies that are present experimenting with crypto investments volition “pull back” owed to marketplace conditions and a misunderstanding of crypto arsenic an investment.

Sequoia Partner Not Optimistic About VCs Entering Crypto

Shaun Maguire, a cryptocurrency spouse successful Sequoia Capital, 1 of the astir progressive VC firms successful the crypto sector, is not precise optimistic astir the aboriginal of different task superior companies successful the area. Maguire, who specializes successful companies successful the tech and crypto sectors that are either successful effect oregon aboriginal investing stages, stated successful a caller podcast that different firms that are present entering the crypto abstraction are going to “pull back” connected these investments erstwhile the markets get little frothy.

However, helium stated that Sequoia volition not autumn successful this class owed to the mode successful which these investments are made successful the firm. According to Maguire, the institution has “permanent intentions” erstwhile it comes to its investments successful the sector. Maguire explained:

Sequoia is precise deliberate with everything we bash and we walk immense amounts of clip debating each strategy change, everything, we statement each effect concern to sometimes excruciating detail, but it helps america marque truly bully decisions and marque decisions arsenic a squad alternatively than arsenic individuals.

The firm, which has already invested successful respective companies successful the assemblage similar Polygon, launched a $500- $600 cardinal money successful February to put successful “liquid” crypto assets arsenic a complement to its different investments to “participate much actively successful protocols” and “better enactment token-only projects.”

Misunderstanding Crypto

This abandonment of crypto investments volition besides beryllium caused by different elements. According to Maguire, determination is simply a cardinal misunderstanding of what crypto and Web3 mightiness connection arsenic caller technologies, with immoderate investors touting decentralization arsenic a ”silver bullet.” Maguire declared:

Decentralization is not a metallic slug that conscionable solves each problems and is amended for everything. You cognize for the immense bulk of compute, you privation it to beryllium centralized.

The influx that blockchain-based companies person gotten from task superior funds has been massive, being fueled by the involvement that the marketplace has developed by NFTs, Web3, and metaverse arsenic trends this year. Just successful Q1, $30 cardinal were invested successful fintech and crypto startups by VC companies.

What bash you deliberation astir Sean Maguire’s instrumentality connected the aboriginal of immoderate VC investments successful crypto? Tell america successful the comments conception below.

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