While some cryptocurrencies may come and go, many investors believe the future of NFT and Web3 is stable and full of opportunity. As Kriptokoin.com, his predictions and market views on Web3 and NFT projects.
Web3 and NFT investors hopeful for the future
Investors interested in the web 3 ecosystem, such as LINK, THETA, FIL, GRT and HNT, saw a 30 percent increase in Bitcoin (BTC) and Ethereum (ETH) prices last month. Despite the decline and the collapse of stablecoins TerraUSD and Luna, they are still blissful. Investors say the broader slowdown isn’t hitting Web3 nearly as hard for good reason. Almost all of the nearly a dozen investors consulted on Web3 investments said they focus on the underlying technology that supports picks and shovels or other applications.
Aaron Holiday, co-founder and director of 645 Ventures, which invests in Web3 companies Solidus Labs and Cion Digital, said the core premise of Web3 is that users He said there is a more decentralized version of the internet powered by crypto that allows them to maintain ownership of their digital assets. The executive also explained that he believes Web3 is isolated, referring to “picks and shovels” as opposed to the broader market crash.
Capital flows to Web3 startups
Most of the venture capital funding goes to companies building tools for the crypto space, such as security and compliance firm Chainalysis, which recently doubled in value following a $170 million Series F round. Solidus Labs, which offers crypto risk analysis for financial institutions, announced $45 million in Series B funding earlier this month. While total venture capital flows to startups slowed in the first quarter of 2022, funds provided to Web3 companies reached a record $9.2 billion in this period. The rise of newer, independent investment firms dedicated to crypto like Paradigm and Haun Ventures, which have raised billions of dollars in the past months, has helped capital flow into Web3 startups. However, other venture companies are also moving to increase their expertise in this field. Some firms like
Lux Capital have added space-focused investors to their teams over the past few months, while others like Bain Capital Ventures have launched crypto-focused arms. Newer investment firms dedicate a significant portion of their portfolios to crypto, even if Web3 is not their sole or primary focus. For example, Day One Ventures, a firm founded by investor Masha Bucher, has supported crypto-focused companies like SuperRare and Worldcoin and even invested a small portion of its funds in NFT projects. (The firm’s collection includes the popular Bored Apes Yacht Club and CryptoPunks.) Bucher said he sees Web3 companies continue to provide funding with solid valuations even now. Day One Ventures owns an NFT token from the popular Bored Apes Yacht Club collection, but founder Masha Bucher says it has personally slowed recent purchases. It is not yet known whether the company will invest in popular NFT cryptocurrencies such as AXS, XTZ, FLOW, ENJ and MANA in the near future.
Not all investors are optimistic
Some investors are less bothered by the current crypto crash as they’ve seen it unfold before. Mike Duboe, a partner of Greylock, first launched the cryptocurrency exchange Mt. He started personally investing in Bitcoin shortly before Gox’s collapse. It has since supported Web3 companies such as Pinata and Magic Eden. Still, he said the founders of prominent Web3 startups have largely managed to withstand the changing market headwinds, adding:
Many of these companies are built by founders who are in crisis. Our faith is as strong as it has historically been.
Not all investors are entirely optimistic. Mo Koyfman, founder of investment firm Shine Capital, said he believes investor appetite for Web3 startups will cool. “Just as the decline in technology stocks will cause valuations to fall, so will the decline in cryptocurrencies,” said founder Mo Koyfman, and he thinks they are all related.
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