2018’s bear market has disturbed a lot of waters, and the field of venture capital funding in the crypto-space has been one of the many victims to take significant hits.
While many news and reports have dwelled on the drastic effect that the yearlong bear was having on the aspect of Bitcoin mining and the loss that was continually being incurred, Barry Silbert, current CEO and founder of Digital Currency Group (DCG), has made an interesting revelation.
With many digital currencies flourishing, and relatively fresh altcoins such as TRON trudging up the ladder in 2017, a good number of Venture Capital firms and investors would get involved heavily in different startups: never more optimistic. Of course, the market of digital currencies is a wild one, and everyone knew that, perhaps only a few just imagined that it would be as wild as this, struggling to cross the annual mark into a bleak 2019. And Silbert did not fail to throw shade at investors and firms who only followed the hot trend of the market, and retreated when the sun did. For Barry Sibert, they just might not fare better than the old croon across the alley which is into Bitcoin because everyone seems to be in it. He commented:
“The VCs disappear when markets are down, and flood back in when markets are up. Are they not supposed to be the smart money? Their investing instincts seem little better than the Coors drinkin’ taxi driver all excited about Tron three weeks before the bubble pops.”
All is Not well in Crypto VC
The year is proving to be a difficult period one for venture capital firms across the crypto sector, and the bleaker ending of 2018, has just made it more difficult according to Silbert. The entrepreneur and expert’s DCG is one of the biggest in the crypto VC sub-sector with a vast range of success stories. The firm has investments in notable companies such as Coinbase, ErisX, Blockchain, and bitFlyer to name a few. According to Silbert, the month of November and December alone has seen a lot of deals for crypto startups collapse. He was quoted saying:
“We’ve seen half a dozen fundraising deals fall apart over the past month after the lead pulled out,” he wrote via his official twitter handle. “All is not well in crypto VC investor land Good time to remind founders that a signed term sheet does not equal cash in the bank.”