Michael Dempsey: Cryptocurrency venture capital has almost stagnated in the past two years, with talent flowing to AI

Investment firm Compound Managing Partner Michael Dempsey stated in an interview with Empire on October 13 that crypto venture capital has nearly stagnated over the past two years. He noted that compared to 2021, when a large number of tech entrepreneurs turned to the crypto industry, the entire tech sector is now attracted by AI, and fewer people are willing to engage in crypto entrepreneurship.

Dempsey believes the industry needs to address talent loss and token incentive issues. While tokenization has its benefits, it is not conducive to long-term incentives. Regarding investment opportunities, he pointed out that some tokens that have been distributed are beginning to show real value, and analysis can be conducted based on fundamentals rather than just narratives. In contrast, in the primary market, aside from new perpetual contract DEX projects, there are not many entrepreneurs willing to explore new directions.