'Crypto As We Know It Is Over': Why Investors Are Turning Away From Bitcoin, Ethereum, XRP

Core Insights - Crypto venture capital firms are facing significant challenges in raising new funds, with many major firms completely pivoting away from the sector and a notable exodus from firms like Paradigm [1][6] VC Fundraising Crisis - Commitments to crypto VC funds are at historic lows and did not recover during Bitcoin's recent bull run, indicating a lack of confidence in the sector [2] - The risk appetite for venture capital has surged in other sectors, but blockchain has only seen outflows, suggesting a shift in investor interest [3] Industry Perception - The perception of the crypto industry has deteriorated, with it being viewed as a space for meaningless projects rather than genuine innovation, often likened to pump-and-dump schemes [5] Challenges and Solutions - Proposed solutions, such as ownership coins granting governance rights to token holders, are dismissed as ineffective, with the core issue being that blockchain is now seen as an "un-investable asset class" [4] - The industry is urged to move away from the blockchain-centric approach and return to more practical realities [8] Team Exodus - A significant portion of Paradigm's team, approximately half, has left in a short span, highlighting the instability within crypto-focused firms [6] - Major players in the crypto VC space, such as Mechanism and Tangent, have exited entirely, raising concerns about the future of crypto investments [6]