Overview of the Current Status of Top Crypto Investment Institutions: Most Have Become Shitcoins

Author: Overnight Porridge, The Way of DeFi

In the past year, the vast majority of participants in the Crypto ecosystem have suffered significant losses, and even top investment institutions with numerous talents are no exception. It is reported that Multicoin Capital, known as the "Moutai of the crypto world," has also experienced a drawdown of 90% in the past year.

One month after the FTX collapse, it would be very interesting to observe the investment portfolios of these top investment institutions.

Next, we will first observe the performance of the investment portfolios of the first-tier and some second-tier Crypto VCs over the past month and attempt to summarize some conclusions.

Note: The projects involved below are from the investment portfolios of Multicoin Capital, Blockchain Capital, Coinbase Ventures, Delphi Digital, Andreessen Horowitz (a16z), Pantera Capital, Polychain Capital, HashKey Capital, Animoca Brands, Paradigm, Tiger Global Management, DragonFly Capital, Binance Labs, Sequoia Capital, Arrington XRP Capital, Framework Ventures, 1confirmation, and Digital Currency Group (DCG), all of which have a circulating market cap exceeding $5 million, listed in no particular order (data from cryptorank).

Top 5 Worst & Best Performing Projects of Leading Crypto VCs in the Past Month

Multicoin Capital

Worst 5 Performing Projects:

Best 5 Performing Projects:

Blockchain Capital

Worst 5 Performing Projects:

Best 5 Performing Projects:

Coinbase Ventures

Worst 5 Performing Projects:

Best 5 Performing Projects:

Delphi Digital

Worst 5 Performing Projects:

Best 5 Performing Projects:

Andreessen Horowitz (a16z)

Worst 5 Performing Projects:

Best 5 Performing Projects:

Pantera Capital

Worst 5 Performing Projects:

Best 5 Performing Projects:

Polychain Capital

Worst 5 Performing Projects:

Best 5 Performing Projects:

HashKey Capital

Worst 5 Performing Projects:

Best 5 Performing Projects:

Animoca Brands

Worst 5 Performing Projects:

Best 5 Performing Projects:

Paradigm

Worst 5 Performing Projects:

Best 5 Performing Projects:

Tiger Global Management

Worst 5 Performing Projects:

Best 5 Performing Projects:

DragonFly Capital

Worst 5 Performing Projects:

Best 5 Performing Projects:

Binance Labs

Worst 5 Performing Projects:

Best 5 Performing Projects:

Sequoia Capital

Worst 5 Performing Projects:

Best 5 Performing Projects:

Arrington XRP Capital

Worst 5 Performing Projects:

Best 5 Performing Projects:

Framework Ventures

Worst 5 Performing Projects:

Best 5 Performing Projects:

1confirmation

Worst 5 Performing Projects:

Best 5 Performing Projects:

Digital Currency Group (DCG)

Worst 5 Performing Projects:

Best 5 Performing Projects:

Some Observations

1. In the past month, with BTC down 2.4% and ETH down 4.0%, many public chain projects that were overly hyped during the last bull market have been severely hit by the market. Typical examples include Flow, Celo, Aurora, Aptos, Helium, Near, Filecoin, Juno, etc. On the other hand, Cosmos Hub (ATOM) and the controversial Solana have gained relatively more support in the short term. Although the narrative of application chains is still prevalent, the poor short-term performance of DYDX and Osmosis indeed indicates that the narrative has very limited effectiveness in the face of headwinds. As the macro environment may change in the second half of 2023, we need to observe L1 public chains more closely.

2. The tokens of the vast majority of DeFi projects have performed very poorly in the past month. Even leading projects like Uniswap saw their token UNI drop by 11.9%, far exceeding the declines of BTC and ETH. This may be related to the significant resistance DeFi faces in attracting new users. Looking ahead to the next potential DeFi bull market, we need to address user experience and use cases, as relying solely on complex and obscure Ponzi token economics is not enough.

3. Among the investment portfolios of many top Crypto VCs, Lido's performance has been relatively healthy, which may be closely related to the upcoming catalyst of Ethereum opening staking withdrawals.

4. In the past month, many previously hyped decentralized social projects have performed very poorly, and currently, there is no dominant project in this field. Observing the development of Nostr and Farcaster will be very interesting.

5. In the field of Crypto gaming, projects with Ponzi token economics represented by STEPN have performed very poorly in the past month. Similarly, tokens of GameFi guild projects like YGG and GuildFi have also suffered severe shrinkage. On the other hand, ParagonsDao, which focuses on game-first Crypto games, has shown independent performance. These phenomena may indicate that the development direction of Crypto gaming has changed, with better game quality more likely to attract players both inside and outside the circle.

6. In the context of a bear market, the tokens of the vast majority of Crypto projects will become shitcoins and be ruthlessly crushed by BTC and ETH, even for projects led by top investment institutions. However, as we enter the next cycle, some new and yet-to-be-disproved Crypto projects will still attract new attention, and observing these changes will be very interesting.