The Rise of Artificial Intelligence Funding Amid the Struggles of Blockchain and Cryptocurrency Startups
On April 17th, Evan Cheng, founder of Sui\’s development team Mysten Labs, stated in an interview that with blockchain and cryptocurrency startups struggling to raise funds after th
On April 17th, Evan Cheng, founder of Sui’s development team Mysten Labs, stated in an interview that with blockchain and cryptocurrency startups struggling to raise funds after the FTX crash, artificial intelligence has now gained a larger share of venture capital funding. Despite numerous difficulties, Cheng believes that this situation provides an opportunity for developers to create an open and transparent infrastructure. Venture capital firms are still willing to provide early financial support for crypto companies, but valuations have been affected. However, once startups reach the later stages of Series A and Series B, it is difficult to obtain growth capital, and only excellent companies can receive support. （Forkast）
Founder of Mysten Labs: AI has taken over the venture capital share in the encryption field
In a recent interview with Evan Cheng, founder of Sui’s development team Mysten Labs, he revealed that in the wake of the FTX crash, it has been difficult for blockchain and cryptocurrency startups to raise funds. However, he noted that this has resulted in a significant rise in venture capital funding for artificial intelligence instead. This article will explore the reasons behind this trend and the opportunities it presents for the future.
The Struggles of Blockchain and Cryptocurrency Startups
Funding Difficulties
After the FTX crash, blockchain and cryptocurrency startups have experienced a significant blow in their efforts to raise funds. This is due to the highly volatile nature of these markets, which has led to market instability and uncertainty about future investments. Furthermore, government regulations have made it increasingly difficult for startups to launch Initial Coin Offerings (ICOs) as a means of securing funding.
Decreased Valuations
As a result of the above factors, the valuations of blockchain and cryptocurrency startups have taken a hit. Investors are hesitant to invest in these markets due to the perceived risks involved. This has created a situation where startups are struggling to attract the necessary capital to grow and expand.
The Rise of Artificial Intelligence Funding
In the midst of these struggles, Evan Cheng notes that venture capital funding for artificial intelligence has risen significantly. The reasons behind this trend are as follows:
Long-Term Potential
While blockchain and cryptocurrency startups may have short-term advantages, the long-term potential of artificial intelligence is undeniable. This technology has a wide range of applications across multiple industries, and its potential for growth and profitability is immense. Investors see this potential and are keen to invest in AI startups.
Stability and Reliability
Compared to the highly volatile and unpredictable nature of blockchain and cryptocurrency markets, artificial intelligence presents a more stable and reliable investment opportunity. AI startups are perceived to be less risky and more likely to succeed over the long term.
Tangible Results
Unlike blockchain and cryptocurrency startups, artificial intelligence has already produced tangible results in numerous industries. This gives investors more confidence in the technology and its potential for growth and profitability.
Opportunities for Developers
Despite the struggles faced by blockchain and cryptocurrency startups, Evan Cheng sees this situation as an opportunity for developers. He believes that the current difficulties provide an opportunity to create an open and transparent infrastructure that will benefit the entire industry. By learning from past mistakes and addressing current concerns, developers can create a foundation for growth and expansion in the future.
Conclusion
In conclusion, the struggles faced by blockchain and cryptocurrency startups have resulted in a significant rise in venture capital funding for artificial intelligence. While this trend may be challenging for some startups in the short term, it presents long-term opportunities for developers and investors alike. By focusing on creating a stable and transparent infrastructure, the industry can overcome current obstacles and move towards a bright and profitable future.
FAQs
1. Q: What is causing the struggles faced by blockchain and cryptocurrency startups?
A: The highly volatile nature of these markets and government regulations are making it difficult for startups to raise funds.
2. Q: Why has there been a rise in venture capital funding for artificial intelligence?
A: Investors see the long-term potential, stability, and tangible results of AI startups as attractive investment opportunities.
3. Q: What opportunities does the rise of AI funding present for developers?
A: Developers can create an open and transparent infrastructure that will benefit the entire industry in the future.
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