PANews reported on October 2 that according to The Block, Multicoin Capital managing partner Tushar Jain said in an interview that the crypto venture capital market has not yet fully adapted to the reality of the post-epidemic economic downturn. Overvaluation and stagnant token prices reflect the challenges facing the cryptocurrency industry. "I think the market still needs to digest some of the aftereffects. This is true in all venture capital fields - not just cryptocurrencies - in 2021 and 2022, a lot of money has poured into risky asset classes, but many people don't want to stop there."
Investors poured $33 billion into crypto startups in 2021, accounting for 5% of global venture capital across all industries, according to a report at the time. At the peak of the pandemic bull run, several crypto companies, such as NFT platform OpenSea and bankrupt lending firm BlockFi, reached unicorn status — although Jain said many of those paper valuations were likely inflated. This apparent hangover isn’t exclusive to the venture capital sector, however. Jain noted that much of the promise of cryptocurrency has yet to be realized. “There’s been too much hype, too much excitement. At the same time, we’ve seen prices really stagnate, the value of major tokens issued over the past year has dropped significantly, and as I said, there’s uncertainty in the political situation right now.”