PANews reported on October 2 that according to The Block, Multicoin Capital managing partner Tushar Jain said in an interview that the crypto venture capital market has not yet fully adapted to the reality of the post-epidemic economic downturn. Overvaluation and stagnant token prices reflect the challenges facing the cryptocurrency industry. "I think the market still needs to digest some of the aftereffects. This is true in all venture capital fields - not just cryptocurrencies - in 2021 and 2022, a lot of money has poured into risky asset classes, but many people don't want to stop there."
According to a report at the time, investors poured $33 billion into crypto startups in 2021, accounting for 5% of global venture capital across all industries. At the peak of the pandemic bull run, several crypto companies, such as NFT platform OpenSea and bankrupt lending company BlockFi, achieved unicorn status — although Jain said many of these paper valuations may be inflated. However, this apparent hangover is not unique to the venture capital sector. Jain pointed out that many of the promises of cryptocurrency have yet to be realized. "There's too much hype, too much excitement. At the same time, we've seen prices really stagnate, the value of major tokens issued in the past year has dropped significantly, and as I said, there's uncertainty in the current political situation."
