Crypto projects need more visionary funding for long-term growth

2025-01-17 14:41:58 Primitive Reading

From cointelegraph by KORI HIGGINS

The euphoria that erupted in crypto markets following the outcome of the US presidential race solidified Bitcoin’s status as a mature asset class in the eyes of the global investor community. The recent market backdrop unleashed arguably the most potent crypto bull run in its 16-year history, pushing the price of Bitcoin

BTC$98,268past the $100,000 barrier.

The fervent activity of institutional investors further propelled Bitcoin’s recent price rally. While most in Web3 welcome the inflow of institutional money into crypto, the level at which these investors will drive innovations forward and support true breakthroughs in Web3 technology is questionable.

To ensure the investor community doesn’t lose sight of Web3’s longer-term potential, leading investors in the space must look beyond the hype and build a durable vision for the future of blockchain adoption that encapsulates a broad view of economic advancements and societal change.

Reimagining Web3 community funding

Amid evolving market conditions, crypto startups are pivoting their funding plans and stakeholder engagements to coincide with changing investor behaviors and demands.

With capital inflows increasingly directed toward these investment products, these market developments could inadvertently impact longstanding investments into Web3 startups. While crypto’s market movement and economic potential have recently dominated investment narratives, we must remember that actual value — both financial and societal — aligns with the long-term vision of Web3.

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Under these market conditions exists an opportunity for the Web3 ecosystem to reimagine the funding landscape to enable and ground various innovative projects in the crypto community. More community-led initiatives in the form of Web3 ecosystem grant programs, hackathons and accelerators are emerging as essential channels for funding and support. Alternative community funding channels bring multiple benefits for recipients, and have the added appeal of speaking directly to the community. The rise of ecosystem-led funding channels may be due to the type of use cases they support and how they achieve interoperability between different technologies.

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