Union Square Ventures, a renowned venture capital firm hailing from New York, has recently expressed further interest in investing in blockchain and cryptocurrency, even though they do not have a dedicated fund for fueling the said interest.
According to last week’s interview, USV’s managing partner Albert Wenger told CNBC that it is but expected for investors to pour money into the blockchain sector, thinking that “the winning blockchain here might be worth a trillion, or a couple of trillion dollars.” He even added that it’s not crazy at all to think that.
“We’re Not Planning to do It”
However, he said that “we’re not planning to do it,” indicating that they are not intending to raise a separate fund dedicated to the cause. “We see a lot of upside to keeping it under the same roof,” Wenger added.
It should be stressed that Union Square Ventures had invested in Coinbase, a notable US crypto exchange giant, among others. For now, the capital venture firm is projecting into the future regarding the market. Despite the deeper plunge of the crypto into the bear market, the company is investing in it, albeit in those that are in the “foundational plumbing” stage.
High Risk, High Reward
Even though Wenger shares Alibaba’s Jack Ma’s statements that blockchain could be a bubble, but he notes that with risk comes the potential for high rewards, especially for those investors who jumped ship early.
“Certainly, for one particular project, there’s an extremely high chance it won’t work. As a result, if it works, the rewards will be very high.”
Consequently, Wenger admitted that he owns Bitcoin and that he understands the risks that the crypto poses to retail investors. He advised that people shouldn’t possess Bitcoin and nothing else. “At that moment, this whole space [cryptocurrency] is a high-risk space, and I don’t think anybody should be investing all of their life savings,” he added.