When crypto is no longer fun, when Multicoin Capital loses its soul, the industry will face a new era of challenges and transformations. The vibrant innovation and community spirit that once defined the space may fade, leading to a more mature but less exciting landscape. It is crucial to stay true to the core values and continue pushing forward despite these changes.

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 of Multicoin Capital, and will explore opportunities outside the crypto industry in other technology sectors. Multicoin officially stated that the fund will continue normal operations, and that existing investments and team structure will remain unaffected.

“The Best Crypto Investor” Steps Back

This is undoubtedly a major news in the crypto VC circle. For a long time, Kyle Samani has frequently written long articles, participated in industry debates, maintained a clear stance on investment strategies, and, through early investments in Solana and the hundreds of times return they generated, he has not only been the soul of Multicoin Capital but also one of the most influential and authoritative investors in the crypto industry.

Previously, Dragonfly managing partner Haseeb Qureshi wrote about the three crypto investors he admires most, ranking Dan Robinson, Chris Dixon, and Kyle Samani as three, two, and one respectively.

“Kyle is one of the few true contrarian investors in the cryptocurrency space. I almost disagree with all his views. But his early investments, and his steadfast belief in holding Solana through the FTX collapse to weather the downturn, make him undoubtedly one of the greatest venture capitalists in crypto history,” Haseeb Qureshi wrote.

And it is precisely such a “greatest of all time” figure who chose to resign at one of the bleakest moments in the crypto industry. The implications behind this are thought-provoking: even the top-tier VC investors can no longer persist? After all, a few years ago, even when SOL’s price fell below $10 due to the FTX incident, he still stuck to his investment views and ultimately proved himself with over 25 times gains.

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

According to available information, Kyle Samani responded to a complaint from X user Taran (@Taran_ss), stating: “Cryptocurrency is not nearly as interesting as many (including myself) once imagined. I used to believe in the vision of Web3, in dApps. Now I don’t. Blockchain is essentially just an asset ledger. It will reshape finance, but that’s about it, not much more. DePIN is another noteworthy area. Crypto will continue to improve, but all the truly interesting questions have already been answered, except for on-chain privacy/confidentiality. (I still believe Zama will win this race).”

In this reply, Kyle Samani clearly states that crypto is no longer interesting and no longer believes in the Web3 vision. Besides reshaping finance, blockchain is unlikely to play a larger role in other fields. Privacy and DePIN are the only areas he still recognizes.

Multicoin Capital also further confirmed Kyle’s disinterest in crypto in a letter to LPs, stating that “Kyle’s interests have shifted from cryptocurrencies to other tech fields such as artificial intelligence, life sciences, and robotics, and he has decided to dedicate time to exploring these emerging technologies.”

Data also reflects a significant shift in Multicoin Capital’s attitude and strategy. According to RootData, since the second half of 2025, Multicoin’s investment rounds have dwindled to only four, and since October 2024, only ten investments. Not only has the frequency of investments sharply slowed, but it also lags behind other well-known VC firms of the same period, ranking beyond 50th.

Multicoin Capital Investment Round History Source: RootData

These changes are partly driven by the bleak market conditions and performance. Among the projects Multicoin heavily invested in over the past few years, Wormhole tokens (valued at $2.25 billion in this round of funding, with a total of $225 million raised, second only to Forward Industries, FTX, and Solana rounds) now have a FDV of only $220 million. Pyth Network’s FDV is just $480 million, and Solana’s market cap has again fallen below $100.

At this point, the reason for Kyle Samani’s departure is very clear: he believes the development direction of crypto has diverged from his expectations and values. The disillusionment of his ideals has compelled him to leave this painful place and seek renewed passion in fields like AI and life sciences.

Next, Multicoin Capital will have to face the situation after “losing its soul.” Kyle Samani’s exit will undoubtedly raise questions about its future direction and leadership: with investment slowing sharply and organizational restructuring underway, will Multicoin still be one of the most research-driven, conviction-based leading VCs in the industry?

The Valley of Ideals

In fact, before Kyle Samani, many other crypto investors and entrepreneurs have expressed similar views, resigning and choosing to step away from the crypto industry. In January, a16z Crypto general partner Arianna Simpson announced her departure and plans to establish a new fund, investing across various sectors beyond crypto.

A more famous case is Ken Chan, co-founder and CTO of Aevo. In a November 2025 article, he straightforwardly stated that he had wasted eight years of his life on cryptocurrencies and described the industry as “the world’s largest and most active super casino.”

“After eight years in crypto, I’ve completely destroyed my ability to discern sustainable business models. In crypto, you don’t need a successful company or product to make money. The industry is filled with tokens with huge market caps but almost no one cares,” Ken Chan said. “This industry mentality is extremely harmful. I believe it will lead to a long-term collapse of social mobility among the younger generation.”

A series of such cases are painting a clearer trend: against the backdrop of a persistently tight macro environment, as the crypto market’s wealth effect diminishes, mainstream product scaling faces long-term obstacles, and the core narratives that once supported industry expansion are being discredited one by one, the crypto industry is experiencing a phased loss of some of its earliest and most idealistic builders and investors.

This loss does not mean a fundamental rejection of crypto technology but reflects that the patience driven by idealism is being tested by the prolonged realization cycles. Before the return structure, industry order, and long-term expectations are reestablished, some key participants are choosing to exit temporarily.

In recent cycles, many VC investors have emphasized that high returns often occur when the market is “ignored,” and bear markets are the best time to capture alpha. But now, even the “greatest investors in history” are turning away at this moment. This itself sends a serious signal to the industry: the problem may no longer be just cyclical market retracements but a phase of bottlenecks in innovation, value orientation, and narrative vision, which are undergoing unprecedented scrutiny and reevaluation.

Fortunately, more top-tier VCs like Coinbase Ventures, a16z, YZi Labs, and Pantera Capital remain active, with over 30 investments in the past year. For the crypto industry in its adjustment phase, these VC supports may not immediately bring new prosperity, but at least indicate that this round of reevaluation has not yet turned into a complete retreat.