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10T Holdings: A large number of crypto startups scare off venture capital firms with valuations of 50 to 80 times

ChainCatcher news, according to Cointelegraph, 10T Holdings CEO Dan Tapiero stated at the Consensus conference that there is a widespread issue of overvaluation among current cryptocurrency startups, with many companies seeking funding at valuations 50-80 times their revenue, far exceeding reasonable limits. The firm has thus rejected over 200 projects, including well-known companies like the bankrupt FTX, BlockFi, and Celsius. Tapiero indicated that they prefer to invest in projects with valuations between $400 million and $500 million, with a valuation-to-revenue ratio not exceeding 10 times.Market data shows that despite concerns about valuation bubbles, the total amount of venture capital transactions in the cryptocurrency sector reached $6 billion in the first quarter of 2025, a more than 100% increase quarter-over-quarter. Pantera Capital CEO Dan Morehead shared his investment strategy at the conference, noting that 86% of their investment projects have achieved positive returns, with 22 becoming unicorn companies. Morehead suggested adopting a diversified strategy of equity and token combination investments to mitigate market volatility risks.Industry analysts pointed out that the current cryptocurrency financing market shows a clear trend of differentiation: on one hand, overvalued projects face difficulties in securing funding, while on the other hand, high-quality projects continue to attract capital. This pattern reflects investors' increasingly rational judgments regarding project quality and valuation.
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