Pantera General Partner Says ‘Great Time’ to Start a Blockchain Company

Despite depressed crypto prices and recent company collapses, Pantera Capital, a leading investor behind the crypto hedge fund, believes there has never been a better time to start a blockchain company.

As part of the 23rd January Post About a year ahead of several Pantera Capital executives, Paul Veraditacht, general partner Pantera Capital explained that “on average,” people working in the crypto space are more educated and passionate about crypto than in previous cycles.

Overall, he said, “We are seeing a high percentage of startups coming to market with strong teams — established crypto startups like Coinbase, big tech companies like Facebook, Uber, and Square, and J. entrepreneurs coming out of legacy financial institutions like P. Morgan. Goldman Sachs.”

There is a market. Still very bearishwith Some companies are connecting. And prices are recovering lost ground, but Veradict thinks it’s still a worthwhile time to be in the space. Invested billions in space. from venture capital firms in the first half of 2022, added:

“In our experience, bear markets typically represent a time when there is less noise and distraction from building.”

“In addition, we have observed that institutions and enterprises are more open than ever to work with blockchain companies to grow their business,” said Veradittakit.

The general partner said it has also seen a volume shift toward highly regulated exchanges and DeFi-based decentralized exchanges as people seek to protect their assets from bad actors, the next generation entering the crypto space. Can be encouraged.

Decentralized Exchange Volume Within the last 12 months, November (the month of FTX’s termination) saw a large increase in trading volume. Source: DeFiLlama

“With increased scrutiny around trust and security, we believe there are opportunities for startups in areas such as self-protection, security, insurance, and identity,” he said.

Meanwhile, Pantera Capital CEO Dan Morehead expressed a similarly bullish view of the crypto space, arguing:

“Despite the lower prices, I think the space is clearly in a better position than ever.”

According to Morehead, since 2017, the developer infrastructure, which was “virtually non-existent at the time”, has improved dramatically.

“It’s much easier to write smart contract-based systems now than in the past,” he said.

“Every other area of ​​the stack has improved, whether test suites or automated tools for catching common bugs in smart contracts, to gain IDE support for Solidity,” Morehead added.

Related: Pantera plans to raise $1.25B for second blockchain fund: Report

Moorhead also points to scalability solutions that enable lower transaction fees as a big leap forward for the space, as “decentralized exchanges can’t compete with centralized exchanges if the fees are too high.”

There is still plenty of fear, uncertainty and doubt (FUD) floating around. After termination of FTX and the resulting pandemic in 2022. But Morehead believes the industry is still very much alive.

“People were saying, ‘Crypto is dead,’ yet I believe it’s a great time to get into the space, start building serious things, and invest in crypto. It really is the darkest before the dawn.” It happens,” he said.