Venture capitalists are ready for big returns with NFT

As stock and crypto markets continue to decline, venture capitalists are turning to the NFT to provide adequate returns to help them survive and grow.

NFTs as a saving grace

2022 was a sad year for investors worldwide because, after sustainable growth driven by epidemics and other factors, global markets began to “correct”, resulting in loss of market cap for companies and loss of investment for investors.

In the midst of financial turmoil and turmoil, NFTs have performed well, and over the past few weeks, we’ve witnessed record-setting developments from NFT and Web3 space. With that in mind, it was only a matter of time before investors began to look to the NFT for huge returns.

Typically, sophisticated investors get returns from a diversified portfolio, and when some investments fail to pay dividends, they rely on others to fill the void until the respective markets recover.

As stock and crypto markets continue to decline, more pressure is being put on the NFT to deliver larger deliveries. Over the past few weeks, venture capitalists have taken steps that have placed most of their hopes on the NFT to act as their saving grace at this critical time.

As the NFT has begun to gain popularity, this category of digital collectibles has been accused of being nothing more than a cash transfer for interested investors. The amount of pressure that will be put on NFT assets to improve prices may be unpleasant for some of us over the next few months.

Venture capitalists are in full swing

Andreesen Horowitz is one of the largest and most capitalized enterprises in the world, and the firm is leading VC as a direct investor in the NFT market. Naturally, Andreasen Horowitz is not alone; Other venture capital firms are either implementing plans to invest directly in the NFT market or are already implementing their NFT investment strategies.

Paradigm is another large venture capital firm that has invested heavily in NFT space. When Andreessen Horowitz and Paradigm begin to increase their investments in a class of assets, the market notices because companies of this size are often unfamiliar with financial and investment decisions.

With that in mind, as venture capitalists throw millions upon millions of dollars into NFT space to buy digital land, digital collectibles and digital art, the market cannot ignore their actions and these actions raise considerable questions.

Let’s consider the case of Punk6529, an unknown web character that has managed to raise about $ 75 million from around 350,000 fans to invest in “Blue Chip” NFT. Ophelia Brown of Blossom Capital shares the following about the company’s rationale for investing in NFT: “

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