VCInvestments

In recent discussions, many have been debating which cryptocurrencies should or should not be listed on Binance. Let me clarify this point: the cryptocurrency market operates on a free-market principle. The liquidity and trading volume across various exchanges, whether centralized (CEX), decentralized (DEX), or hybrid platforms, are all part of a shared ecosystem. Binance listing or not listing a project doesn’t determine its existence or trading volume. Even without Binance’s involvement, these projects continue to thrive, with liquidity being redistributed across the entire industry.
Additionally, when VC-backed projects unlock their tokens, meme coins, localized tokens, and even opportunistic schemes continue to flow throughout the market. With potential ETF approval, funds from traditional financial markets will also pour into the crypto space, further boosting liquidity. Regarding venture capital (VC) investment, it’s worth noting that VCs often raise funds from Limited Partners (LPs) with long lock-up periods, sometimes spanning 7 years. After a project’s Token Generation Event (TGE), it can take at least a year before VCs are allowed to sell their holdings. Some VCs might face losses in the crypto space, and the liquidity provided by them may be affected, but their investments still play a key role in fueling projects.
For investors, understanding a project’s tokenomics, including token use cases, release schedules, holding ratios, and initial circulating supply, is crucial for making informed decisions. Cryptocurrency prices and governance structures are influenced by the project team’s actions and not by any external factors alone, and there’s no one-size-fits-all answer for success.
With the rise of decentralized finance (DeFi), the industry has gained more liquidity and freedom, which complicates the ability of centralized exchanges to create uniform rules. However, this freedom is what makes the crypto market so attractive.
Before investing, always Do Your Own Research (DYOR) to evaluate the
fundamentals of any project thoroughly.
#CryptoMarket #VCInvestments #DYOR #DeFi #Tokenomics

​

Venture capital investment in the crypto sector has dropped to levels reminiscent of the 2023 bear market, signaling a shift in funding strategies. Unlike previous years, where mass VC-backed project launches dominated, capital is now flowing through private deals. February’s total funding is on track to fall below $500 million unless a major last-minute investment changes the landscape. While December 2024 saw a surge in VC activity, setting high expectations for 2025, the momentum has since waned. Investor interest in the traditional VC-backed model has struggled to recover, reflecting broader changes in the industry.

Recent data suggests a modest increase in the number of funding rounds by the end of the month, with approximately 132 deals securing $795 million in investment—marking a 30% decline from previous peaks. One of the largest rounds in recent weeks was Reservoir’s $14 million raise. The downturn in funding also highlights a shift in market narratives, with investors prioritizing blockchain infrastructure, DeFi, and service-based projects. Seed rounds continue to represent around 30% of deals, with most securing between $1 million and $3 million. However, the total number of VC-backed deals remains significantly lower, with February recording just 92, a figure not seen since the worst periods of 2023.

Another notable trend is the decline of U.S.-based VC dominance in crypto investments. Despite the "Made in USA" narrative gaining traction, U.S. firms have fallen behind in undisclosed funding rounds. While the country secured 67 deals last month, totaling over $8.1 billion, private funding rounds globally exceeded $10 billion. This shift challenges expectations of a strong growth year for crypto funding in 2025, which was projected to attract up to $18 billion in new capital. The recent slowdown also aligns with declining market performance, as December’s surge in crypto prices was accompanied by increased VC investment, only for funding to retreat when Bitcoin and altcoins lost momentum.

The broader trend indicates that crypto funds are becoming increasingly selective, with many major investment firms struggling to break even. As of February 2025, only Coinbase Ventures remains near profitability, while other insider funds report cumulative losses dating back to mid-2024. The prolonged downturn in altcoin prices and investor fatigue from token unlocks have further pressured the market. As a result, new projects are exploring alternative financing methods, including airdrops, smaller token sales, and even potential IPOs, as the traditional VC-backed model loses its appeal.
#VCInvestments #VCProjects #CryptoVc