Partner of Multicoin Capital: The cryptocurrency market is facing the "aftermath" of the "surplus" of venture capital during the last bull market

According to The Block, Tushar Jain, Managing Partner of Multicoin Capital, stated in an interview that the cryptocurrency venture capital market has not fully adapted to the economic downturn after the pandemic. Overvaluation and stagnant token prices reflect the challenges faced by the cryptocurrency industry. I think the market still needs to digest some aftermath. This is true in all venture capital fields - not just cryptocurrencies - in 2021 and 2022, a large amount of funds poured into the risk asset class, but many people don't want to stop there yet According to a report at the time, investors invested $33 billion in cryptocurrency startups in 2021, accounting for 5% of all global industry venture capital. At the peak of the bull market during the pandemic, several cryptocurrency companies, including NFT platform OpenSea and bankrupt loan company BlockFi, reached unicorn status - although Jain stated that many of these paper valuations may have been exaggerated. However, this obvious aftermath does not only exist in the field of venture capital. Jain pointed out that many prospects of cryptocurrency have not yet been realized. There is too much hype and excitement. At the same time, we see that prices have indeed stagnated, the value of major tokens issued in the past year has significantly decreased, and as I said, there is uncertainty in the current political situation