DeFiance CEO: Crypto venture capital is dead; in the future, only pure cash flow businesses will be invested in

Odaily Planet Daily reports that DeFiance Capital CEO Arthur posted on X stating that the cryptocurrency market has undergone a complete transformation — shifting from a valuation system supported by venture capital and centered on growth, to one focused on generating short-term cash flow, as this is the most likely path to deliver substantial returns to investors. Investors who have not yet understood this shift will only endlessly consume capital.

Arthur: “Venture capital-style crypto is dead, cash flow-style crypto is eternal. Moving forward, all new projects I invest in must be purely cash flow businesses, capable of recouping all invested capital within 6 to 12 months, and achieving 3 to 5 times returns solely through cash flow. Any concept projects that only hype growth will no longer work.”

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

CoinShares exposes the mining industry crisis: computing power fees fall to a five-year low, miners are in urgent trouble

CoinShares’ report shows that in Q4 2025, Bitcoin mining faced severe difficulties: the computing power price fell to a historic low, and many older mining rigs were operating at a loss. The mining sector is splitting into companies centered on AI and companies that are purely mining-based; in the future, this could accelerate consolidation and change risk profiles.

MarketWhisper7m ago

A CEX shared March trading data: cryptocurrency trading volume of $16 billion, projected market trading volume of $2.6 billion

A certain CEX released trading data from March 1 to March 27, 2026: stock notional trading volume of $196 billion, 187 million options contracts, $16 billion in cryptocurrencies, and more. Complete data will be included in the Q1 2026 earnings report.

GateNews1h ago

Swift blockchain shared ledgers enter the MVP development stage, with plans to deploy real trading operations this year

Swift announced that its blockchain shared ledger project has made significant progress. It is developing its first minimum viable product (MVP) to enable interoperability for tokenized deposits at banks, support 24/7 cross-border payments, and improve payment speed and transparency.

GateNews2h ago

Strategy pushes pause button on Bitcoin purchases, stock sales

Strategy, the largest public Bitcoin treasury firm, reported no BTC purchases last week for the first time since December 2025. Despite holding 762,099 BTC worth over $51 billion, the company's stock price has dropped 60% in six months.

Cointelegraph8h ago

Arkham Explains Rise of Crypto Treasury Companies

Crypto treasury firms enable indirect investment in digital assets like Bitcoin and Ethereum through equity. The model, popularized by companies like Strategy, involves holding crypto, raising capital via stocks, and earning returns through methods like staking. However, volatility risks persist, with firms needing to monitor performance metrics closely.

CryptoFrontNews8h ago

SWIFT’s blockchain-based shared ledger enters the MVP phase, with plans to go live for real transactions within 2026

SWIFT announced that its blockchain shared ledger project has entered the build phase, with plans to go live in 2026. The initiative aims to enable interoperability for tokenized deposits, support 24/7 cross-border payments, and improve payment speed and liquidity visibility.

GateNews11h ago
Comment
0/400
No comments