Michael Dempsey: Crypto Venture Capital Has Been Nearly Dead for Two Years as AI Diverts Talent
Michael Dempsey, managing partner at Compound, said in an interview with Empire on October 13 that crypto venture capital has been practically inactive for two years. In 2021, tech entrepreneurs flocked to the crypto sector; today, AI is attracting most of these professionals. Dempsey highlighted the need for more talent and better token incentives, warning that tokenization could undermine long-term incentives. At the same time, some fully decentralized tokens are beginning to demonstrate real value, allowing investors to assess fundamentals rather than just narratives. In the venture capital landscape, few founders are exploring new ideas beyond perpetual futures DEXs.
Michael Dempsey, managing partner at Compound, said in an interview with Empire on October 13 that crypto venture capital has been practically inactive for two years. In 2021, tech entrepreneurs flocked to the crypto sector; today, AI is attracting most of these professionals. Dempsey highlighted the need for more talent and better token incentives, warning that tokenization could undermine long-term incentives. At the same time, some fully decentralized tokens are beginning to demonstrate real value, allowing investors to assess fundamentals rather than just narratives. In the venture capital landscape, few founders are exploring new ideas beyond perpetual futures DEXs.