Major Investment Firms Will Get Out Of Cryptos

There will be big investment companies getting out of cryptos. Read here why and what effect this will have.

With this statement comes Shaun Maguire, a crypto partner of Sequoia Capital. This is one of the most active venture capital firms when it comes to investing in digital currencies. He gave his opinion on the future of many investment companies investing in crypto. According to him, many of the companies now experimenting with crypto investments will “back out” due to market conditions and a misunderstanding of crypto as an investment.

Investment firms are exiting cryptos

Maguire specializes in companies in the tech and crypto sector that are in the start-up or early investment phase. He discussed the market in a podcast. He fears that many companies will get out of cryptos because of a wrong image. This could cause the market to fall.

His company certainly won’t do this. According to Maguire, the company has “permanent intentions” when it comes to its investments in the sector. The company, which has already invested in several industry companies such as Polygon, launched a $500-$600 million fund in February to invest in “liquid” crypto assets to complement its other investments to “participate more actively to protocols” and “better support for token-only projects.”

Shutdown

This shutdown of crypto investments will also be caused by other elements. According to Maguire, there is a fundamental misunderstanding of what crypto and Web3 could offer as new technologies, with some investors touting decentralization as a “silver bullet”. Maguire stated: Decentralization is not a panacea that solves all problems and is better for everything.