The Rise of Artificial Intelligence: A New Hope for Venture Capital Funding Amidst the FTX Crash

04/17/2023 02:34 • NFT Newsflash • 167 views

On April 17th, Evan Cheng, founder of Sui’s development team Mysten Labs, stated in an interview that with blockchain and cryptocurrency startups struggling to raise funds after the FTX crash, artificial intelligence has now gained a larger share of venture capital funding. Despite numerous difficulties, Cheng believes that this situation provides an opportunity for developers to create an open and transparent infrastructure. Venture capital firms are still willing to provide early financial support for crypto companies, but valuations have been affected. However, once startups reach the later stages of Series A and Series B, it is difficult to obtain growth capital, and only excellent companies can receive support. （Forkast）

Founder of Mysten Labs: AI has taken over the venture capital share in the encryption field

As blockchain and cryptocurrency startups struggle to raise funds after the FTX crash, a new opportunity arises for developers to create an open and transparent infrastructure. In this article, we will explore the rise of artificial intelligence as a potential solution to the current struggles faced by the industry.

Understanding the Current State of the Industry

On April 17th, Evan Cheng, founder of Sui’s development team Mysten Labs, shared his thoughts on the current state of the industry in an interview with Forkast. With venture capital funding becoming scarce due to the FTX crash, Cheng mentioned that artificial intelligence has now become a larger share of the capital raised by startups. This creates an opportunity for developers to innovate and create new solutions that address problems that the industry is facing.

The Need for an Open and Transparent Infrastructure

As the blockchain industry continues to grow, it is becoming increasingly important for companies to have an infrastructure that is open and transparent. This allows stakeholders to have a better understanding of company operations and promotes trust in the system. Additionally, it enables developers to build on top of existing infrastructure, accelerating the pace of innovation.

The Role of Artificial Intelligence in the Blockchain Sphere

Artificial intelligence has the potential to usher in a new era of innovation for the blockchain industry. With its ability to automate processes and analyze data in real-time, it can help companies operate more efficiently while providing insights into complex data sets. Moreover, artificial intelligence can aid in the detection of fraudulent activities and protect against cyber-attacks.

Leveraging Venture Capital to Grow the Industry

Despite the current struggles faced by the industry, venture capital firms are still willing to provide funding for crypto companies. However, the valuations have been affected, making it more difficult to raise funds. Once startups reach the later stages of Series A and Series B, it becomes even more challenging to obtain growth capital. Only the excellent companies that can demonstrate significant potential for growth will be able to secure the necessary support.

Conclusion

In conclusion, the rise of artificial intelligence presents an exciting opportunity for the blockchain industry to innovate and create an open and transparent infrastructure. This, in turn, could potentially bring back venture capital funding, boost valuations and accelerate growth. Developers who can demonstrate expertise in artificial intelligence and its integration into blockchain technology are likely to be at the forefront of innovation in the industry.

FAQs:

Q: What is the FTX crash?
A: The FTX crash refers to the steep decline in cryptocurrency prices that occurred in May 2021.
Q: How can developers use artificial intelligence to help the industry?
A: Developers can use artificial intelligence to automate processes, analyze data, detect fraud and protect against cyber-attacks.
Q: What can companies do to attract venture capital funding?
A: Companies that can demonstrate significant potential for growth and have an open and transparent infrastructure are more likely to attract venture capital funding.

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