Despite falling crypto prices and recent company bankruptcies, one of the major investors in crypto hedge fund Pantera Capital believes there has never been a better time to start a blockchain company. increase.
As part of a Jan. 23 post about a year later from many Pantera Capital executives, Pantera Capital general partner Paul Veraditta Kit said that “on average,” people working in the crypto space explained that he is more educated and passionate about crypto than the crypto industry. in the previous cycle.
A strong start to the year! https://t.co/gFe5fUM0gT
— paul.nft (@veradittakit) January 23, 2023
Overall, “There is a high percentage of start-ups entering the market with strong teams. , from legacy financial institutions such as JP Morgan and Goldman Sachs.”
While the market is still very bearish, with some companies collapsing and prices recovering lost ground, Belladitta Kit says the number of venture capital firms investing in the sector in the first half of 2022 will increase. Quoting a billion dollars, we believe it’s a worthwhile time to enter this space:
“In our experience, bear markets typically represent periods of less distraction from noise and construction.”
“Additionally, we have found that institutions and companies are more open than ever to working with blockchain companies to enhance their business,” said Beradittakit.
General Partner has also observed a shift in trading volume to highly regulated exchanges and DeFi-based decentralized exchanges, as people seek to protect their assets from bad actors, and the next generation will take over the crypto space. He said that it may be an opportunity to enter the
“We believe there are opportunities for startups in areas such as self-custody, security, insurance and identity with more scrutiny of trust and security,” he said.
Meanwhile, Pantera Capital CEO Dan Morehead took a similarly bullish view on the crypto space, arguing that:
“Despite the lower price, I think the space is clearly in a much better position than it has ever been.”
According to Morehead, since 2017, the developer infrastructure, which was “virtually non-existent at the time,” has improved dramatically.
“Creating smart contract-based systems has become much easier than in previous cycles,” he said.
“Every other area of the stack has been improved, including test suites and automated tools to find common bugs in smart contracts, and we have added IDE support for Solidity,” Morehead added.
Related: Pantera Plans to Raise $1.25 Billion in Second Blockchain Fund: Report
Morehead also points to scalability solutions that allow for lower transaction fees as a big leap in space, as “decentralized exchanges cannot compete with centralized exchanges if the fees are too high.” increase.
While there is still a lot of fear, uncertainty and doubt (FUD) in the air in the wake of the 2022 FTX demise and resulting contagion, Morehead believes the industry is still very active.
“People used to say ‘crypto is dead,’ but it’s one of the best times to get into space and start building something serious, and it’s a great time to put capital into crypto. I think it was an opportunity, the darkest time before dawn,” he said.