VC investors collectively turn pessimistic on the crypto market, and the investment trend shifts towards AI after Kyle Samani's departure

The crypto industry’s winter has not only frozen the secondary market but is also chilling investors’ enthusiasm. As the bear market pattern in crypto gradually takes hold, market pessimism is spreading from retail trading to more cautious professional investors. From panic selling in the secondary market, to funding difficulties in the primary market, to shifts in VC investment attitudes, a wave of pessimism is spreading throughout the entire crypto ecosystem.

Well-known investors announce strategic adjustments

The change in market sentiment is especially evident in specific events. Kyle Samani, co-founder of Multicoin Capital, recently announced his departure from the company, signaling a significant shift in primary market investment mindset. Meanwhile, DeFiance CEO Arthur also expressed a pessimistic view, believing that traditional crypto venture capital models are coming to an end and that future investment strategies will focus on projects with stable cash flow.

Mainstream investment shifting toward AI and Web2

More notably, this change in perspective is not an isolated case. According to Simon Dedic, founder of Moonrock Capital, recent conversations with several leading industry investors reveal that these seasoned decision-makers are either skeptical about a crypto market recovery or have gradually exited the crypto space, reallocating funds and efforts into emerging sectors like artificial intelligence and Web2 stocks. This reflects that professional investors, once confident in the crypto market, are systematically adjusting their asset allocations.

From tightening funding environments to shifts in investor sentiment, these signals indicate that the crypto industry is experiencing a deep cooling period. When VC, the most professional source of capital, begins to withdraw or pivot, the road to market recovery may be longer than expected.