Blockingradigm’s expansion into AI has sparked criticism in the industry for their diversification strategy. Regarding Blockingradigm’s proactive “paradigm shift”, Mindao, co-founder of dForce, believes that compared to traditional VCs, crypto VCs have shorter arbitrage routes and fewer opportunities, making diversified investments a logical choice in line with market trends.
There is a lot of criticism against Blockingradigm on the internet, accusing them of betraying the revolution. However, this transformation reflects the structural differences between crypto level-one investments and traditional investments. The path from level-one to level-two arbitrage in crypto is short, and many seed rounds jump directly to the listing stage. This is unlike traditional investments, which involve 5-10 rounds of private placement and have a large institutional allocation capacity. Even for crypto-native firms with billions of AUM, there are not as many opportunities.
This has resulted in them investing more in FTX than in DeFi projects. Level-one institutions only have the opportunity to invest in the early 1-2 rounds, and at most, they can participate in incubation (which cannot be scaled and is difficult to please), such as Blockingradigm helping to design the Blend protocol for Blur. However, institutions ultimately have to face their market users – the LP gold owners. Previously, people criticized VC for monopolizing Web3, but now that it has diversified, they accuse them of betraying the revolution. I think the market is just looking for a scapegoat.
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Reference: https://twitter.com/mindaoyang/status/1662372382114295809
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