When encryption is no longer interesting, when Multicoin Capital loses its soul

Author: Gu Yu, ChainCatcher

Today, Kyle Samani, co-founder and managing partner of Multicoin Capital, announced on his social media account that he will step back from the daily management and investment decisions at Multicoin Capital, and will explore opportunities in other technology fields outside the crypto industry. Multicoin officially stated that the fund will continue to operate normally, and the existing investments and team structure will not be affected.

"Best Crypto Investor" Chooses to Fade Out

This is undoubtedly a significant piece of news in the crypto VC circle. For a long time, Kyle Samani has frequently written long articles, participated in industry debates, maintained a distinct stance on investment strategies, and, with his early investment in Solana that brought hundreds of times returns, has not only been the soul of Multicoin Capital but also one of the most influential investors in the crypto industry.

Previously, Haseeb Qureshi, managing partner at Dragonfly, wrote an article discussing his three favorite crypto investors, ranking Dan Robinson, Chris Dixon, and Kyle Samani as third, second, and first, respectively.

"Kyle is one of the few true contrarian investors in the cryptocurrency space. I disagree with almost all of his views. But his initial investment, and his steadfast belief in holding Solana through the downturn after the FTX collapse, undoubtedly makes him one of the greatest venture capitalists in the history of cryptocurrency," Haseeb Qureshi wrote.

And it is this "historical best" who chose to announce his resignation at one of the bleakest moments in the crypto industry, which inevitably raises questions: even the top VC investors can no longer persist? After all, just a few years ago, even when the price of SOL dropped below $10 due to the FTX incident, he still maintained his investment viewpoint and ultimately proved himself with a more than 25-fold increase.

Shortly after this news was announced, a tweet that Kyle Samani posted earlier today on his X account and quickly deleted was also uncovered.

According to the information, Kyle Samani responded to a complaint from X user Taran (@Taran_ss) by stating: "Cryptocurrency is not as interesting as many people (including myself) once imagined. I used to believe in the vision of Web3 and dApps. Now I don't. Blockchain is essentially an asset ledger. They will reshape finance, but that's about it, nothing more. DePIN is another area worth noting. Cryptocurrency will continue to improve, but all the truly interesting questions have been answered, except for the issue of on-chain privacy/confidentiality. (I still firmly believe Zama will win this race.)"

In this response, Kyle Samani clearly believes that crypto is no longer interesting and no longer believes in the vision of Web3. Apart from reshaping finance, it is difficult for blockchain to play a larger role in other fields. Privacy and DePIN are the only areas he still recognizes.

Multicoin Capital also further validated the notion of "Kyle's disinterest in crypto" in a letter to LPs, stating that "Kyle's interests have expanded from cryptocurrency to other technology fields such as artificial intelligence, life sciences, and robotics, and he has decided to invest time exploring these emerging technologies."

Data also reflects that Multicoin Capital's attitude and strategy are undergoing significant changes. According to RootData, since the second half of 2025, Multicoin Capital has participated in only 4 investment rounds, and since October 2024, only 10 times, which not only represents a significant slowdown in investment frequency but also clearly lags behind other well-known VCs during the same period, ranking after 50.

Multicoin Capital Investment Round History Source: RootData

These changes are partly due to the dismal market conditions and performance. Among the projects that Multicoin Capital heavily invested in over the past few years, the Wormhole token, which was invested at a valuation of $2.5 billion (with a total financing amount of $225 million, second only to the investment rounds of Forward Industries, FTX, and Solana), now has an FDV of only $220 million, the Pyth Network token has an FDV of only $480 million, and Solana's market cap has once again fallen below $100.

Thus, the reasons for Kyle Samani's departure have become very clear: he believes that the direction of crypto development has deviated from his expectations and even his values, and the disillusionment has forced him to decide to leave this place of sorrow and attempt to regain his passion in fields like AI and life sciences.

Moving forward, Multicoin Capital will also have to face the situation after "losing its soul." Kyle Samani's exit will undoubtedly raise questions about its future direction and leadership: with a sharp slowdown in investment and organizational adjustments, will Multicoin Capital still be one of the most research-oriented and steadfast VCs in the industry?

The Low Point of Idealism

In fact, before Kyle Samani, many crypto investors and entrepreneurs had already expressed similar views, resigning and choosing to temporarily leave the crypto industry. In January, a16z Crypto general partner Arianna Simpson announced her departure and plans to establish a new fund that invests across various industries, not limited to crypto.

A more famous case is Ken Chan, former co-founder and CTO of Aevo. In an article published in November 2025, he bluntly stated that he had wasted eight years of his life on cryptocurrency and described the crypto industry as "the largest and most participatory super casino in the world."

"After eight years of struggling in the cryptocurrency space, I have completely ruined my ability to discern sustainable business models. In the cryptocurrency field, you can make money without a successful business or product. The cryptocurrency industry is filled with a large number of tokens with extremely high market values but almost no one cares about them," Ken Chan believes. "This industry mentality is extremely harmful, and I believe it will lead to a long-term collapse of social mobility for the younger generation."

A series of emerging cases are outlining a clearer trend: against the backdrop of a continuously tightening macro environment, as the wealth effect of the crypto market significantly weakens, typical products face long-term obstacles to scaling, and the core narratives that once supported industry expansion are being systematically debunked, the crypto industry is experiencing a phase of loss of some of the earliest and most idealistic builders and investors.

This loss does not mean a fundamental denial of crypto technology, but rather reflects that the patience driven by idealism is being tested by the continuously prolonged realization cycle. Before the return structure, industry order, and long-term expectations are re-established, some core participants choose to exit temporarily.

In the past few cycles, many VC investors have emphasized that high-return investments often occur when the market is "ignored." Bear markets are the best time to capture investment alpha, but now even the "historical best investors" are choosing to turn away at this moment, which itself conveys a signal that the industry should take seriously: the problem may no longer just be a cyclical market pullback, but rather a phase bottleneck in the crypto industry regarding innovation capability, value orientation, and narrative vision, which may be undergoing unprecedented scrutiny and re-evaluation.

Fortunately, more first-line VCs such as Coinbase Ventures, a16z, YZi Labs, and Pantera Capital remain active, with over 30 investments in the past year. For the crypto industry, which is in a period of adjustment, the support from these VCs may not immediately bring new prosperity, but at least it signifies that this round of re-evaluation has not evolved into a complete exit.