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Vice President of the consulting firm BlockSpaceForce, Charles Chong, has indicated that crypto startups are facing a new challenge — the expanding artificial intelligence market, which is attracting investor capital.
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The rapid increase in interest towards AI intensifies the competition for venture capital and presents new obstacles for the cryptocurrency sector, according to the executive. He noted that under the current circumstances, crypto startups must strive harder to capture the attention of investors.
“Crypto project teams will need to exert greater effort. Founders must clearly showcase competitive advantages, a comprehensible monetization model, and business resilience in a stagnant market,” Chong outlined.
He believes that venture capitalists still maintain interest in specific segments of the crypto industry, particularly in payment services, trading platforms, and decentralized finance (DeFi) solutions.
However, the artificial intelligence market presents a more appealing risk-to-reward ratio, warns the BlockSpaceForce vice president. In his view, the long-term potential of the cryptocurrency industry hinges on its ability to integrate into a broader global technological ecosystem, where AI is expected to assume a dominant role soon.
Previously, at a private event organized by analysts from CfC St. Moritz, representatives of the crypto industry identified a lack of liquidity as one of the main barriers to the emergence of new large-scale crypto projects.
