December 5, 2022

Charles Hoskinson: "Instead of investing in Cardano, VCs are ready to lose money in Terra and FTX"

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Charles Hoskinson: "Instead of investing in Cardano, VCs are ready to lose money in Terra and FTX"

Cardano founder Charles Hoskinson is disappointed that most venture capital firms are not ready to invest in projects based on this blockchain.

Recently COO of Pavia MetaversePaul Manuel tweeted that VCs are refusing to invest in Pavia because it is based on the Cardano blockchain. Patrick Tobler, founder of NMKR, a Web3 framework powered by Cardano, confirmed Manuel's claim. Tobler said he received a letter from a venture capitalist stating that he would not invest in any Cardano-related project.

"Over the past few months I have spentseveral conversations with venture capital companies. When we mentioned that our project runs on the Cardano blockchain, they shuddered and said, “No thanks. We make risky investments, but we cannot intentionally take risks,” Manuel tweeted.

Charles Hoskinson reactedto these comments, writing with irony that risk-taking entrepreneurs are more likely to invest their capital in failed crypto-currency projects such as Terra and the FTX exchange. After the collapse of the Terra ecosystem in May, Hoskinson wondered why VCs so hate stable Cardano and love other altcoins. He mentioned Galaxy Digital CEO Michael Novogratz, who got a tattoo inspired by the LUNA cryptocurrency.

In an interview at the Mainnet 2022 Cardano eventHoskinson suggested that the only way to arouse the interest of venture companies is if several Cardano-based decentralized applications are valued at several billion dollars. This can be expected in 2023-2024, Hoskinson said.

In October, the head of Cardano expressed dissatisfaction that Coindesk had never included him in the list of the most influential people in the cryptocurrency space.