The crypto world has been shaken this week by the liquidity issues and potential bankruptcy of FTX. Sequoia Capital released a statement to LPs, marking their massive investment in FTX to zero! Indeed, we conducted an ad-hoc crypto ecosystem analysis yesterday and identified at least 10–30 high-profile VC-backed crypto projects potentially exposed or impacted by FTX’s current liquidity issues.
Could we witness the first-ever VC mass bail-out of crypto projects? Some VCs may choose to bail out projects to save face. Moreover, what you see right now is the natural washout of the excesses driven by low-interest rates of the past few years and the loss of a long-term value-building mentality in the crypto ecosystem, which saw a massive influx of VC-backed projects focused on quick short-term gains without business fundamentals nor solid cryptographic foundations.
Despite the current turmoil, at Zaiku Group, we’re long term bullish about this emerging industry! We see a huge opportunity to create a new internet era through tokenization, bringing programmability and digital ownership to all assets. We believe everything valuable, from money, art, and shares, to identity will benefit from being converted into tokens, logged onto blockchains and managed by individuals rather than third-parties. Hence, we firmly believe that the era of centralized exchanges is on the wane.
Many thanks for reading. We look forward to sharing our deep-tech community-building journey with you.
Side note: We’re currently working on a secure cross-chain communication protocol that we’ll open source at some point over the coming months. This should make controlling your digital assets easier and transfers secure, bypassing the need for a centralized third-party.
Disclaimer: Any opinions, newsletters, research, analyses, prices, projections or other information offered by ZAIKU GROUP is provided as general market commentary, and does not constitute investment advice. ZAIKU GROUP will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
