Framework: Half of the junk VCs and projects will be eliminated, but high-liquidity high-quality assets will be increased
Odaily News Vance Spencer, co-founder of Framework Ventures, wrote on the X platform that the current situation is complicated, international trade has been completely paralyzed, the real industry is in danger, and a large-scale unemployment wave is about to hit. The government will then have to launch a large-scale stimulus plan to save the inevitable economic recession. In this market environment, investment categories that are not affected by tariffs and areas where Trump publicly shows favor should be preferred. In addition to cryptocurrencies, perhaps only special commodities with rigid demand such as gold and uranium meet the criteria. Within the cryptocurrency market, focus should be placed on assets with solid fundamentals, buybacks, and growing adoption, or small-cap currencies that can seize market share. Stablecoins, DeFi, and emerging public chains are most likely to have independent trends. The entire crypto industry will fall into a war of attrition with the private equity market - teams will collapse one after another, funds will be exhausted or marginalized, venture capital fundraising will become more difficult, and capital supply will gradually shrink. This is not a bad thing. The industry already needs to eliminate half of VC funds and junk projects. Spencer added that he has never been so optimistic about the crypto market in many years. The triple resonance of price trend, adoption rate and fundamentals indicates that many assets in the crypto ecosystem will see a 10-20 times increase. Framework will increase its holdings of high-liquidity high-quality assets and deploy early-stage venture capital. The market situation after the collapse of FTX, where "you can make 2-3 times the profit even if you invest with your eyes closed", will not happen again. Careful selection is the best way.
