🛰️FN Observation Express丨Why are crypto VCs generally not making money in this cycle?

The last cycle can truly be called the golden age of crypto VCs. a16z and Paradigm sat atop the pyramid, commanding influence, while Multicoin Capital rose to fame with Solana and other projects. During the peak period from 2021 to 2022, it is no exaggeration to say that every few days, projects in the DeFi/NFT/gaming space received VC funding, and the cry of the Web3 revolution filled social networks.

However, in this cycle, the return performance of crypto VCs has plummeted, which is disappointing. Many projects are overvalued, token prices have crashed in the secondary market, VCs have been pushed to the stage of criticism by the community and retail investors, and VC exit channels have been blocked. Bitcoin has risen from a cycle low of $15,000.00 to a high of nearly $110,000.00, an increase of nearly 734%, with an annualized return of approximately 94.28% from 2022 to 2025. How many funds in the market have outperformed $BTC? Recently, Du Jun stated that ABCDE has stopped investing in new projects and raising funds for the second phase, and is rethinking how to participate in the development of the industry.

So, what are the reasons that have led VCs into their current predicament and even losses? Go to:
https://t.co/7uKZmmqyqz