Investment Capital to Flow Strategically and Cautiously in Crypto, Says Mysten Labs CEO
According to Mysten Labs CEO Evan Cheng, investment capital will soon start flowing into the crypto market again, but this time with a more strategic and cautious approach. Cheng stated that investors, including major players like BlackRock, recognize the opportunities in the crypto space and are looking to get ahead of them. He mentioned that there is significant interest from regions like the Gulf and Asia.
Cheng himself has experience dealing with investors in web3 and has closed a $300 million funding round in 2022. He also pitched a web3 fund valued at over $100 million earlier this year. Mysten Labs, co-founded by Cheng, is known for its Layer 1 blockchain Sui and leverages the Move programming language.
Traditional Finance Shows Growing Interest
Cheng is optimistic about the increasing interest of traditional financial institutions in crypto and blockchain. He believes that as the market matures, a merit-based landscape will emerge. Traditional finance understands consumer needs and how to utilize blockchain technology effectively. Cheng anticipates that emerging winners will be rewarded based on merit, although speculative activities may still exist.
Venture Investment in Crypto Startups Declines
The past year has seen a significant decline in venture investment in crypto startups, with less than $500 million invested in August. This marks the lowest level recorded in over two years.
Hot Take: Investment Capital Will Return to Crypto with Strategic Approach
Mysten Labs CEO Evan Cheng predicts that investment capital will once again flow into the crypto market. However, this time investors will adopt a more strategic and cautious approach. Traditional financial institutions are also showing increasing interest in the space. As the market matures, a merit-based landscape is expected to emerge, rewarding winners based on their achievements. Despite the decline in venture investment, there are still opportunities for growth and development in the crypto startup ecosystem.
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