Union Square Ventures, an early investor in Coinbaseย Cryptoย exchange, desiresย to inย reality โdouble downโ on Webย 3.0 investing rather than retreat in the face of increasing regulatory pressure.
โ Andย once they want to shut it down, I say double down,โ Fred Wilson, partner at USV, told the fundโs limited partners earlier thisย comingย week on a quarterly call. โThe most powerful technologies send waves of fear through the establishment. Andย once you see that fear in their eyes, invest in the cause of that fear.โ
Unitedย States regulatoryย authorities have increasingly cracked down on the cryptocurrency industry owingย to recent high-profile collapses, including the FTXย Tradingย Ltd exchange and the cryptocurrency lender Celsiusย Networkย LLC. In March, forย example, Coinbaseย Cryptoย exchange received a warning from the Unitedย States Securities and Exchange Commission about a potential enforcement action. The increased scrutiny of the cryptocurrency industry in the Unitedย States has prompted corporations to explore international financial hubs, including Dubai, Singapore and Hong Kong.
New York-based USV remains committed to keep backing Webย 3.0 startups. The storied deal financialย resources company invested in Coinbaseย Cryptoย exchange in 2013 as its 1st cryptocurrency bet. Over the years, the company has invested in over 25 Webย 3.0 projects, including Uniswap, Polygon and Helium, reportsย by The Block Proโs Deals Dashboard.
Althoughย while USV remains determined, Wilson stated earlier this year that Webย 3.0 investors would require โa very strong stomach and a very long time horizonโ even as valuations are compelling withinย a bearish market. Regardlessย of the aย yearย ago being challenging, USV raised $625 Million across two new funds to invest in both web2 and web3.
