Framework Ventures co-founder says DeFi offers hope after FTX collapse

Falling FTX will reinforces the need for regulation, but also sparks long-term interest from venture capitalists looking to invest in decentralized finance (DeFi), according to Michael Anderson, co-founder of Framework Ventures.

β€œIt just seems obvious that DeFi is the only way we can continue to do these types of financial services operations in the crypto ecosystem,” Anderson told TechCrunch. “It gives us hope and strengthens our resolve that the things we are pushing for are the right things to work on.”

In April, Framework Ventures launched its third fund, worth $400 million, with about half of that dedicated to web3 games. Between half and 70 percent of the pitches the firm receives are gaming-related companies, Anderson said. But the recent situation with FTX has the firm “doubling down and tripling down on everything we believe in,” which includes DeFi and the regulation of centralized finance (CeFi).

And while some companies like Multicoin seemingly lost capital held on the FTX crypto exchange, Vance Spencer, co-founder of Framework Ventures, said the firm had no exposure.

“Regulation is not something we should be against or prevent,” Anderson said. “Reasonable regulation still makes sense now.” [former FTX CEO Sam Bankman-Fried] has been taken off the table, we can move forward and talk more about centralized finance vs. DeFi and the pros and cons of each.”

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