Traditional Venture Capitalists are getting into crypto

Traditional venture capitalists are finally getting into investing in blockchain and cryptocurrency projects. Although blockchain VC’s have always invested in crypto projects, traditional Venture Capitalists have always been a bit hesitant to do so. But now, two big names in Venture Capital have topped the top 10 investors into cryptocurrency projects. This just means more money pouring into the smaller Alt Coin market. This is good because with VC funding, more of these projects can be long-term and actually result in products or services that people will actually use. It also means more serious projects(not just money grabbing schemes) will start up, hopefully giving the space a little more legitimacy in the future. The alt coin market requires an investor to have a lot of money to be successful because the probability of any project succeeding in the long run, even when run by the best people is 20% at best which means a Venture Capitalist will have to seed many projects to find the one that will be a success. However, that one success will earn him or her 1000 times what they put in so that is why it is worth the risk. Because of this dynamic, a few successful projects will require an entire wave of investment that will be good for the entire sector.

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