The third quarter of 2022 saw a reduction in venture capital activity across the blockchain sector. It seems that investors are moving away from decentralized finance (DeFi) and towards Web3.
The cryptocurrency industry tends to have a problem with overusing buzzwords, like how “DeFi” was everywhere just a couple of years ago.. In 2022, it seems that both startups and already established blockchain companies are embracing the term “Web3”. But what exactly is Web3?
Cointelegraph Research delved into the matter in its recently released Q3 2022 Venture Capital Report. To better understand the issue, he organized a roundtable with VCs to find out how they view Web3.
Web3: The new buzzword
The panel was asked if the term Web3 is overused or the next big thing. Tim Draper, founder of Draper Fisher Jurvetson, responded:
“The media is capturing people’s imaginations and saying, ‘Web3! Something new is coming.’ And that forced me—and I’m sure it compels entrepreneurs around the world—to think: ‘So, with Web3, what can I do? And so, all of a sudden, they become more creative.”
Draper provided insight into the current state of the cryptocurrency industry and his thoughts on Web3. He was also on the panel of Smiyet Belrhiti, Managing Partner of Keychain Ventures, which provides Web3 and blockchain investment opportunities to funds. Rounding out the panel was Julian Liniger, co-founder and CEO of Relai, a Bitcoin (BTC) app.
On the bearish sentiment currently being expressed by VC investors, Draper said:
“Investors are always wrong. They come in when everything is hyped and everything is great, and then VCs have to compete with each other. […] Now, of course, would be the best time to invest in venture capital.”
Panel guests also discussed the current state of the cryptocurrency market, VC activity in the cryptocurrency space, popular trends in 2022, and what may be on the horizon in 2023, as well as discussing the Bitcoin and its role in Web3 and DeFi going forward.
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