Michael Dempsey: Crypto Venture Capital Stagnates, Talent Shifts to AI

Michael Dempsey, managing partner at investment firm Compound, stated on October 13 that crypto venture capital has nearly stagnated over the past two years. Unlike in 2021, when tech entrepreneurs flocked to the crypto industry, the focus of the tech sector has now shifted to AI, resulting in a decrease in the number of people engaging in crypto startups. Dempsey pointed out that the industry needs to address talent loss and token incentive issues; while tokenization has its advantages, it is not conducive to long-term motivation. Regarding investment opportunities, he mentioned that some tokens that have already been distributed are beginning to show real value, and analysis should be based on fundamentals rather than just narratives. In contrast, in the primary market, there are not many entrepreneurs willing to explore new directions, aside from new perpetual contract DEX projects.

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