TLDR:
Key Points:
- Over $731 million was invested in crypto startups in March due to positive news and recent price leaps.
- VC founder Brian D. Evans believes that bull runs can lead to VCs investing without proper due diligence.
Over $731 million was invested in crypto startups in March, fueled by positive news and recent price spikes. Brian D. Evans, CEO and founder of VC fund BDE Ventures, warns that bull runs can lead to VCs throwing money at projects without conducting proper due diligence. He notes that this behavior has been seen in past bull runs, but during bear markets, VCs tend to be more cautious in their investment decisions. Evans believes that it is essential to be discerning and cautious in both bull and bear markets, taking risks on promising projects that can bring innovation to the market.
Furthermore, Evans predicts a future where the traditional financial sector and crypto industry will merge, with new players launching funds and tokenizing assets. As the approval of spot Bitcoin exchange-traded funds in the US closes the gap between traditional finance and crypto, VCs may start to change their investment patterns. Bull runs are also characterized by the pursuit of trending narratives, and BDE is focusing on projects related to artificial intelligence, distributed computing, asset tokenization, decentralized infrastructure, and gaming.
Evans anticipates emerging use cases in the crypto space as blockchains become more efficient, leading to new ideas and projects that can solve various problems in innovative ways. He emphasizes the importance of being selective in investments and supporting projects that have the potential to bring significant advancements to the market.
