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The Scoop

Tom Schmidt on why this cycle is different for venture

Jan 14, 2025
Tom Schmidt, a Partner at Dragonfly, shares his insights on the evolving cryptocurrency landscape. He discusses how crypto is becoming a legitimate institutional asset by 2025 and the unique challenges facing venture capital in this space. Schmidt highlights the shift from price-driven token models to application-based usage, emphasizing innovation over hype. He also explores new customer acquisition strategies and the potential recovery of the market, signifying a promising future for crypto startups.
37:56

Episode guests

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Quick takeaways

  • The cryptocurrency market is evolving into a recognized institutional asset class, with a shift towards profitability and sustainability exemplified by emerging applications and startups.
  • Despite a downturn in venture capital and crypto markets, this period of correction could lead to healthier investment practices as first-time managers face stricter fundraising conditions.

Deep dives

Opportunities in Venture and Crypto

Enterprises entering 2025 may find substantial opportunities in the venture capital landscape, particularly within crypto. As traditional markets drive crypto valuations, there is growing interest from institutional investors who are beginning to recognize crypto as an essential asset class. This transition reflects how past perceptions are evolving, as recent experiences indicate that crypto behaves more like risk assets influenced by interest rates rather than purely speculative investments. Moreover, observed changes suggest that many sophisticated players are now involved in pricing these assets, which could lead to diversification for crypto relative to traditional allocators.

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