Connect with us

Hi, what are you looking for?

Economy CEO Expresses Concern over Surging Valuations in Crypto Sector CEO Kris Marszalek has raised concerns about the sustainability of the surging valuations in the cryptocurrency sector. 

In a recent interview with Bloomberg, Marszalek expressed skepticism about the generous valuations being thrown around by project teams as the industry experiences a notable increase in billion-dollar funding rounds for early-stage crypto startups.

The CEO’s observations serve as a reminder of the investment frenzy that accompanied the pandemic-era bull run in tokens, which yielded mixed results for investors. 

While acknowledging the desire for financial returns, Marszalek emphasized the need for caution in the current market environment.’s VC Arm Scale Back Capital, the venture capital arm of, had $500 million allocated for investments in startups in the sector as of January 2022. 

However, over the past 18 months, the fund has scaled back its investment activity. 

Publicly available information shows that has made only four investments since the start of 2023, compared to 35 investments in the preceding two years.

Despite the resurgence of exuberance in crypto venturing, Marszalek stated that the fund aimed to be reasonable and prudent in its investment approach. 

While he did not disclose the exact figure, Marszalek mentioned that the unit has made approximately 70 investments to date, deploying a significant amount of capital.

The industry as a whole has witnessed recent venture capital deals that highlight the soaring valuations. 

Blockchain platform Berachain, operated by pseudonymous founders with bear-themed avatars, secured $100 million at a valuation of at least $1 billion. 

Additionally, software firm Merkle Manufactory, the creator of decentralized social-media network Farcaster, and blockchain developer Monad Labs have also achieved billion-dollar valuations in recent weeks. Capital has participated in some of these funding rounds, including Berachain’s raise, as well as investments in staking firm Kiln and gaming startup Arcade2Earn. 

The venture arm primarily focuses on seed-stage and Series A rounds.

However, Marszalek acknowledged that limited partners (LPs) providing capital for venture funds share his wariness of the industry’s rekindled hype.

LPs are reluctant to invest additional funds until venture funds demonstrate tangible returns.

Marszalek Bullish on Bitcoin

Marszalek has recently said that Bitcoin may experience some selling pressure in the lead-up to the highly anticipated halving event, but the long-term outlook remains bullish

While acknowledging the possibility of selling pressure in the near term due to the “buy-the-rumor, sell-the-news” trading phenomenon, he emphasized that the halving will have a significant positive impact on the market in the long run. 

“Over a longer period, the halving will make a substantial difference and is a positive development for the market.”

Specifically, Marszalek expressed optimism about the six months following the halving, predicting “pretty decent action” in the Bitcoin market during that period. 

Despite short-term uncertainties, he remains bullish on Bitcoin’s future and believes that the halving will ultimately drive the digital asset to new heights.

As of now, Bitcoin is trading at $63,575, largely flat over the past day. 

The post CEO Expresses Concern over Surging Valuations in Crypto Sector appeared first on Cryptonews.

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!



Pavel Durov, the founder of Telegram, has received a generous donation from over half a million players of the viral Telegram-based clicker game called...


The crypto industry has made a record $94 million in political donations since 2023 in an effort to support pro-crypto governance. According to a...


As the Floki (FLOKI) bulls eye a quick 50% rally from current levels around $0.00021 to yearly highs above $0.00031 after a key technical...


Bank of America (BAC) upgraded its rating on Coinbase (COIN) shares from underperform to neutral on Friday and raised its price target for Coinbase to...


In a major move, Turkey drafted a crypto bill, tabled by the ruling party (AK Party) Group Chairperson Abdullah Güler on May 16, to...


Hong Kong became the first region outside mainland China to allow users to open digital wallets and hold China’s CBDC e-CNY, otherwise known as...

You May Also Like

Financial Advisors


Financial Advisors


Financial Advisors

The humongous outbreak of the dreaded coronavirus has brought about a groundbreaking change in what the world perceived as ‘normal’. With an estimated 280,391,189...

Disclaimer: Respect, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2024 Respect Investment. All Rights Reserved.