FTX-Binance ordeal has not shaken venture capital confidence in crypto industry

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FTX-Binance ordeal has not shaken VC confidence in crypto industry

Venture capitalists and investors are rethinking what it means to invest in crypto companies after a possible deal between two of the world largest crypto exchanges, FTX and Binance, collapsed Wednesday. But despite the shocking nature of the ordeal, many are continuing business as usual.

To recap, after a stunning announcement that he had signed a non-binding letter of intent to buy FTX on Tuesday, Changpeng Zhao, the chief executive of Binance, the world’s largest crypto exchange, said Wednesday that Binance will walk away from the deal “as a result of corporate due diligence, as well as the latest news reports regarding mishandled customer funds and alleged US agency investigations.

For big investors like BlackRock BLK , the chaos of the past couple of days will not have much of an impact on their investment strategy, said Robert Le, crypto analyst at PitchBook, in an interview with MarketWatch. “I don’t think it changes their strategy much with crypto. I think they will continue to make their investments. They have really, really large funds.”

Other investors have faith in the broader crypto industry and its long-term potential. Tekin Salimi, founder of Dao5 capital, an early-stage Web3 fund, said his company “operates with a long-term focus on developing the entire ecosystem without being distracted by retail hype and near-term trends.” He added that “the most interesting observation on this whole FTX fallout is how little it has distracted the core crypto builders I know.

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I feel bad for the customers, didn't I hear or read somewhere that if a platform went bankrupt that the users would basically lose all of their crypto? I hope I'm wrong.

When does SBF go to jail? Am I missing this part of the equation?🤔

Amazing scenes.

Idiots.

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