Retail Investors Continue To Drive Adoption Deciding everything behind closed doors shrouded in secrecy has been the traditional way of doing things and these days, some seek to ratify investment decisions through community-oriented voting, as was witnessed during the funding rounds of SushiSwap. The scenario is changing for the better with institutional investors rethinking their strategies to suit the needs and demands of the decentralized world of Web3.0. Hoskinson warns, “They (the institutional investors) are always going to get their pound of flesh before everybody else.” This prevalence has caught the attention of Cardano founder Charles Hoskinson who thinks institutional investment threatens the sector’s meritocratic and community-governed nature. Institutional investors are increasingly interested in the crypto market but aren’t always aligned with the principles of decentralization and user-orientation and some have been at odds with the broader interests of the crypto and digital assets community. In other words, addressing volatility issues is key to long-term success, and the recent influx of venture dollars goes a long way to help ensure smoother sailing.
What’s really important is infusing liquidity into crypto markets. Shan Aggarwal of Coinbase Ventures highlights that short-term gain isn't the primary metric for success given the blockchain-powered future that Web 3.0 promises. Venture capitalists aren’t getting into the crypto industry merely for the ROI. Additionally, Paradigm and Andreessen Horowtiz have launched their own crypto investment funds worth $2.5 billion and $2.2 billion, respectively, the largest of their kind to date. The surge includes a $10 billion investment in crypto exchange Bullish Global, and $350 million in funding for NFT gaming company Dapper Labs. Venture capitalists invested $26 billion in crypto-based projects in 2021, dwarfing figures from previous years.
Kardia Ventures has made tens of millions of dollars in investments across 18 companies, including participating in an $8.5 million seed round for DeHorizon and a $2.1 million initial round for Thetan Arena.
They also provide startups with access to an essential and extensive network of investors, stakeholders, and service providers, and provide much-needed capital to help ensure early stage startups have a clear path to success.
Kardia Ventures CEO Huy Nguyen believes incubators bring far more than expertise and experience to the table. The “ 2021 List of Blockchain Venture Builders, Incubators & Startup Accelerators,” is pretty comprehensive, and since their arrival on the scene, this collective has been a catalyst for increasing institutional investments in crypto-based projects, which has helped flood the market with record amounts of cash. In addition to discovering and supporting genuinely promising early-stage startups, incubators significantly broadened the scope for capital formation and accumulation in the blockchain cryptocurrency sector. There was a silver lining to those dark days in that it proved to be a time for learning from mistakes for many and rethinking the future of crypto.Ī wave of pioneering crypto-based incubators, accelerators and venture capitalists emerged aiming to restore normalcy and rekindle the flame of innovation. The big message was, “there are adults on the room”, and there is some groundbreaking innovation going in here that is of benefit to society, lets not get lost in the technological jargon and please exercise a bit of patience.Ĭharacteristic of bubbles that burst, a slump followed this high point, commonly known as the “Crypto Winter”.
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