Cryptocurrency VC Dynamics and Research

This round of funding bets on the transition of cryptocurrency from the infrastructure development phase to the phase of real user adoption. Whether focusing on cryptocurrency or crossing over to AI, this real money will only flow to those places that can turn technology into products.

Homogenized industries are ultimately fragile; only when different species emerge can the market be considered truly alive.

In a16z's logic, cryptocurrency is not only a financial innovation tool but also a technological system concerning value, ownership, and coordination mechanisms, as well as a strategic technology that impacts U.S. national interests.

If the past Paradigm represented the "engineer era" of the cryptocurrency industry, then what it will face next may be a more pragmatic and market results-oriented phase. The success or failure of this adjustment will also determine whether it can continue to play the role of a definer rather than a bystander in the next cycle.

When many native crypto VCs indulge in narrative-driven and short-term speculation, they face a dilemma of mismatched value capture and risk-taking. The trading instincts, secondary market hedging capabilities, and emphasis on stablecoin cash flow demonstrated by Dragonfly precisely return to the old rules of long-cycle dollar funds.

While small projects are still struggling with the next round of financing and token issuance, the giants are already using cash to buy time and acquisitions to secure the future.

When mergers and acquisitions and IPOs become the mainstream exit paths, and when the types of LPs become more diverse and fund cycles are extended, will crypto VCs — especially Asian VCs — rebound in the new cycle?

Patience is an opportunity, luck is a profession, FOMO = suicide.

The total addressable market (TAM) for digital assets is now the largest in history and will be the smallest thereafter.

Strive to find new narratives.