TLDR: Many blockchain startups in the crypto world are facing the same challenges as traditional tech startups, as they are subject to macroeconomic forces, investor skepticism, and the need for financial discipline. This is exemplified by the changing fortunes of “unicorns” in the tech industry, which were once rare but are now ubiquitous and often struggling. The venture capital environment has also shifted, making it more difficult for new startups to secure funding. In the crypto sector, startups have had to rely on venture money to grow after regulators cracked down on ICOs and other token sales. However, the landscape has changed as VC firms have become more cautious and skeptical due to high-profile frauds and unsustainable valuations. To survive, crypto startups will need to exercise discipline, make prudent hiring decisions, and avoid taking on too many high-risk projects.
In summary, the key points of the article are:
- Many blockchain startups in the crypto world are subject to the same business forces as traditional tech startups.
- The venture capital environment has shifted, with fewer new unicorns being minted and existing ones struggling to find funding.
- Crypto startups must exercise discipline and avoid the mistakes of the past in order to survive.