Crypto Market in ‘Artificial Boom’ Fueled by VC Money, Says Expert The crypto market is experiencing an "artificial boom" fueled by venture capital (VC) money, according to the founder and general partner of crypto and blockchain venture firm Delta Blockchain Fund, Kavita Gupta. In an op-ed for Fortune, Gupta argues that the recent surge in crypto valuations is unsustainable and that much of the VC money is going toward marketing expenses rather than on actual product development. "Over the past year, I've watched in disbelief as crypto projects with little more than a white paper and a website raise millions of dollars in funding based on outrageous valuations," she wrote. "At the Token2049 conference in Singapore, I witnessed community managers from various projects — many in their early 20s — throwing lavish parties at luxury hotels with rooms that cost more than $700 a night. The source of their largesse is obvious: venture capital. And much of it is going toward marketing expenses, i.e., big parties." Gupta argues that for the crypto industry to grow in a healthier way, VCs must reconsider the wasteful spending they're enabling. "The crypto industry is still in its early stages, and it's important that we focus on building real products and services that people actually want to use," she wrote. "If we continue to focus on marketing hype and speculation, we risk creating a bubble that will eventually burst."