“As venture investors, we take a long-term view on the industry; despite the current market turmoil. We are actively assessing and investing in the right opportunities,” Marc Weinstein, founding partner of Mechanism Capital, said to TechCrunch. “The premise of DeFi has, if anything, been strengthened by the collapse of centralized entities from opaque counterparty relationships.”
Decentralized finance (DeFi) is often associated with trusting blockchain technology to execute services through smart contracts, while centralized finance (CeFi) usually refers to more traditional business models and involves having people manage funds and manually execute services.
“Market sentiment is shaken, but committed VCs with experience from several crypto market cycles will continue to invest.” Marc Weinstein, founding partner, Mechanism Capital
Historically, the venture market doesn’t get “too offended” by what transpires in secondary markets, David Gan, general partner at OP Crypto, said to TechCrunch. Regardless, he said, the seeming death of FTX is saddening for everyone, “not just in the VC space, but across the board.”
When there are massive crashes and burns, it speaks to what we’ve been seeing over the past decade: It’s the Wild West out there, Samantha Lewis, principal at Mercury, said to TechCrunch.
Some crypto VCs see decentralization as the future following FTX collapse by Jacquelyn Melinek originally published on TechCrunch