Crypto VCs Struggle with Harsh Reality of Bear Market.

The recent market downturn has hit crypto venture capital firms hard, with token-based projects like Braintrust seeing their valuations plummet. The liquid nature of tokens means that losses are immediately apparent, creating a dilemma for venture investors. Despite the risks, token strategies remain popular among crypto-focused VCs, who believe that the market will recover. However, fundraising for crypto VC has fallen off a cliff in 2023, and LPs are growing increasingly hesitant to invest in the space.