Jake Tuff 
Many venture capitalists are betting big on cryptocurrency, but what is the real reason for this? Is it to capitalize on the growth of blockchain technology? Or, is it simply a safe investment? The answers to these questions aren’t always easy to discern. Fortunately, there are some signs that these investors are paying attention. Here’s a look at the most prominent examples. Animoca Brands and Animoca Capital are two of the most active investors in the crypto industry.
VCs have been pouring cash into blockchain and digital currency startups, but are their investments safe? Some are predicting a steep decline in prices, but many others have said that there’s no reason to bet heavily on crypto just yet. This is in contrast to last year’s bear market, which caused the market to fall. Despite the bear market, there are still plenty of opportunities in the crypto space.
One of the primary differences between VC investments and traditional venture capital is the emphasis on commercial feasibility and expanding product categories. While cryptocurrency VC investment is much faster and less regulated, many VCs may be under pressure to make a fast exit. While it may be risky for the VCs, it can help a crypto startup establish credibility and influencer marketing efforts. Ultimately, it may also backfire by alienating the decentralized protocol and skeptics.
As the tech industry becomes more democratized, venture capitalists may need to take a stance on crypto. After all, speculation is part of crypto. Investors are betting on the future of blockchain technology, and this is a key source of contention for regulators. However, if the investors are right, they could be on the right track to make money from the new technology. Andreessen Horowitz and Sequoia Capital are already backing a new cryptocurrency startup called Polygon.
Peter Thiel, founder of the Founders Fund, has put hundreds of millions of dollars into bitcoin investments. His investments were spread across multiple recent funds. While the cryptocurrency market is still in its infancy, the firm is seeing tremendous growth in the blockchain industry. The firm’s recent investment in stablecoin issuer Circle has already raised $42 million. In addition to these massive deals, there is still a lot of room for more investment in the crypto space.
One of the biggest investors in blockchain technology is Lightspeed Venture Partners. The firm raised more than $60 million in the first quarter of 2018 and has since invested $1.5 billion in fintech as a whole. Its investments include Layer One blockchain Solana and crypto exchange FTX. Lightspeed also invested $40 million in Twitter, and that’s just a few of their many investments in the cryptocurrency space. Unlike a small amount of other venture capitalists, this new investment has been incredibly lucrative.
Three Arrows Capital is another well-known fund manager. The firm owns stakes in many prominent blockchain systems, including UTXO and DeFi. Currently, they’re investing in several blockchain projects in the hopes of establishing long-term value. In fact, a large chunk of Three Arrows’ investments revolve around these initiatives. The company also has stakes in other companies that make use of blockchain technology.
