Add as a preferred source on GoogleCompound Managing Partner Says Crypto VC Is Near a Standstill
Michael Dempsey said artificial intelligence has drawn developers and capital away from crypto, while token incentives remain difficult to align with long-term interests.
Compound managing partner Michael Dempsey said crypto venture activity has been subdued for nearly two years, with the slowdown dating to 2024 as developers and capital move toward artificial intelligence.
Dempsey said technology’s focus has shifted toward AI, drawing talent and funding away from crypto projects. He contrasted that trend with 2021, when technology entrepreneurs flocked to crypto.
He also raised concerns about token incentives. Dempsey acknowledged that tokenization has practical potential but said token-based incentives can be difficult to align with long-term interests.
Sonny Jang
ReporterSonny Jang reports on people and leadership in digital assets for TokenPost. Send corrections or tips to info@tokenpost.com.