DeFiance CEO: Crypto Venture Capital Model is Dead, Future Will Only Invest in Cash-Flow Businesses

BlockBeats News, February 13th, DeFiance Capital CEO Arthur posted on Medium, stating that the cryptocurrency market has undergone a complete transformation: from a venture capital-backed, growth-centric valuation system to a cash flow-centric one, as this is the most likely path to provide substantial returns to investors. Investors who have not yet grasped this transformation will only continue to endlessly consume capital.

Arthur: "Venture Capital-style crypto is dead, Cash Flow-style crypto is eternal. All future projects I invest in must be pure cash flow businesses, capable of recouping all invested capital within 6 to 12 months and achieving a 3 to 5x return solely based on cash flow. Any project that relies solely on hyped growth concepts will no longer work."