Has the FTX mess iced venture interest in crypto?

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It hasn’t been a good year for blockchain-based startup activity. Apart from asset-price correction throughout a normal venture capital slowdown, web3-focused tech upstarts have additionally needed to take care of a sequence of intra-industry crises which have, at instances, dominated know-how headlines.

The Terra/Luna mess comes to mind. As does the meltdown of Three Arrows Capital. And that’s to not point out the rapid fall of FTX and its related entities.


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Amid all of the above, many of us constructing or investing in blockchain-based property and protocols have stored their chins up. Evidence of that abounds — startups are nonetheless being founded and scaled in the web3 space and venture investors are still writing checks. Business as common then, proper? Perhaps.

It’s worth recalling that in 2022, the tempo at which venture capital {dollars} have been disbursed into web3-focused firms — a broad time period; I’m not making an attempt to weigh in on the crypto-versus-bitcoin argument — has declined this yr. Crunchbase information examined by my alma mater Crunchbase News famous just lately, for instance, that after a This fall 2021 peak, capital raised by firms coping with cryptocurrency or blockchains fell in every successive quarter by way of Q3 2022.

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