Fun

Sequoia Capital Partner Believes Lots of VCs Will Pull Back From Crypto

News Feed - 2022-05-03 04:05:18

Sequoia Capital Partner Believes Lots of VCs Will Pull Back From Crypto


Shaun Maguire, a crypto partner of Sequoia Capital, one of the venture capital firms most active when it comes to investments in the cryptocurrency space, issued its opinion on the future of many VCs investing in crypto. To him, many of the companies that are now experimenting with crypto investments will “pull back” due to market conditions and a misunderstanding of crypto as an investment. Sequoia Partner Not Optimistic About VCs Entering Crypto


Shaun Maguire, a cryptocurrency partner in Sequoia Capital, one of the most active VC firms in the crypto sector, is not very optimistic about the future of other venture capital companies in the area. Maguire, who specializes in companies in the tech and crypto sectors that are either in seed or early investing stages, stated in a recent podcast that other firms that are now entering the crypto space are going to “pull back” on these investments when the markets get less frothy.


However, he stated that Sequoia will not fall in this category due to the way in which these investments are made in the firm. According to Maguire, the company has “permanent intentions” when it comes to its investments in the sector. Maguire explained:


Sequoia is very deliberate with everything we do and we spend huge amounts of time debating every strategy change, everything, we debate every seed investment to sometimes excruciating detail, but it helps us make really good decisions and make decisions as a team rather than as individuals.


The firm, which has already invested in several companies in the sector like Polygon, launched a $500- $600 million fund in February to invest in “liquid” crypto assets as a complement to its other investments to “participate more actively in protocols” and “better support token-only projects.” Misunderstanding Crypto


This abandonment of crypto investments will also be caused by other elements. According to Maguire, there is a fundamental misunderstanding of what crypto and Web3 might offer as new technologies, with some investors touting decentralization as a ”silver bullet.” Maguire declared:


Decentralization is not a silver bullet that just solves all problems and is better for everything. You know for the vast majority of compute, you want it to be centralized.


The influx that blockchain-based companies have gotten from venture capital funds has been massive, being fueled by the interest that the market has developed by NFTs, Web3, and metaverse as trends this year. Just in Q1, $30 billion were invested in fintech and crypto startups by VC companies. Tags in this story cryptocurrency fund, Decentralization, NFTs, Polygon, sean maguire, sequoia, Sequoia Capital, Web3


What do you think about Sean Maguire’s take on the future of some VC investments in crypto? Tell us in the comments section below. Sergio Goschenko


Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved. Telegram Users Can Send and Receive Toncoin Within Messenger Chats NEWS | 7 hours ago Ukrainian Soccer Club Shakhtar to Raise Humanitarian Funds Through NFT Sale NEWS | 12 hours ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleTransient Presents: SPLASH – Your Web3 Home of Prediction Pools Next articleWikipedia Stops Accepting Cryptocurrency Donations Citing Community’s Environmental Concerns Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItBitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals


A bitcoin ATM operator has been indicted in New York for running an illegal business "marketed towards individuals engaged in criminal activity." The district attorney in charge described: "Robert Taylor allegedly went to great lengths to keep his bitcoin kiosk ... read more.Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Fed"s Bullard Wants to Raise Bank Rate to 3.5% by Year"s End, Hints at 75 Basis Point Rate Hike Microbt Reveals Latest Bitcoin Mining Rigs — Machines Produce up to 126 TH/s With Custom 5nm Chip Design Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

TikTok to automatically label AI-generated content
Savannah Fortis10 hours agoTikTok to automatically label AI-generated contentTikTok takes a proactive step in assuring AI authenticity on its platform by automatically labeling AI-generated content using new Content Cred
Binance launches ‘Megadrop’ early access program for Web3 rewards
Tristan Greene7 hours agoBinance launches ‘Megadrop’ early access program for Web3 rewardsThe new platform combines airdrops and quests into a loyalty program.3289 Total views13 Total sharesListen to article 0:00News
Microstrategy CEO on Mainstream Bitcoin Adoption: ‘I See Evidence of a Lot More Institutional Adoption’
Microstrategy CEO on Mainstream Bitcoin Adoption: "I See Evidence of a Lot More Institutional Adoption" The Nasdaq-listed company Microstrategy sees “evidence of a lot more
US Senator Says Too Many Crypto Firms Are Able to Scam Customers — Urges SEC to Regulate
US Senator Says Too Many Crypto Firms Are Able to Scam Customers — Urges SEC to Regulate U.S. Senator Elizabeth Warren says that “too many crypto firms have been able to s
The Billion-Dollar Bitcoin Case: Long-Awaited Kleiman v. Wright Trial Begins Next Week in Miami
The Billion-Dollar Bitcoin Case: Long-Awaited Kleiman v. Wright Trial Begins Next Week in Miami On Monday, November 1, the long-awaited Kleiman v. Wright trial will begin as a fede
Spanish Tax Agency Puts Crypto in Its Sights for the Upcoming Tax Season
Spanish Tax Agency Puts Crypto in Its Sights for the Upcoming Tax Season The Spanish tax agency has included crypto as part of its new guidelines for this year’s upcoming tax
Ana Paula Pereira7 hours agoENS developers urge Unstoppable Domains to drop patents or face lawsuitENS developer Nick Johnson claims a patent granted to Unstoppable Domains in January is entirely based on ENS Labs innova
Indian Commerce Giant Flipkart Will Allow Customers to Purchase Items in the Metaverse
Indian Commerce Giant Flipkart Will Allow Customers to Purchase Items in the Metaverse Flipkart, the Walmart-backed Indian e-commerce giant, has launched a pilot to allow its custo
Arijit Sarkar28 minutes agoCBDCs offer faster settlements: Citi survey of global securities firmsThe year-on-year growing support CBDCs is supported by ongoing domestic pilots and cross-border initiatives in various juri
Stanford’s Blyth Fund allocates 7% of its portfolio to Bitcoin
Martin Young3 hours agoStanford’s Blyth Fund allocates 7% of its portfolio to BitcoinKole Lee, the leader of Stanford’s Blockchain Club, pitched the student-run fund to invest in BlackRock’s spot Bitcoin ETF as ear
Cointelegraph Research12 hours agoDriving liquidity and efficiency: The essential role of crypto market makersExploring the vital role of crypto market makers in driving liquidity and stability in the digital asset marke
Tom Mitchelhill6 hours agoToughen up. Mt. Gox’s ex-CEO only had a ‘little calculator’ to prepare for trialMark Karpelès was seemingly drawing parallels to Sam Bankman-Fried’s recent antics, claiming to have gott