Crypto's Darwinism Makes VCs King of the Apes

Welcome to Bloomberg Crypto, our twice-weekly look at Bitcoin, blockchain and more. If someone forwarded this to you, sign up here. In today’s edition, Hannah Miller explores the intersection of money and crypto, and spies contradictions:

Going ape

Crypto had a breakout year in 2021 and here is one stat that helps show it: Venture capital firms poured more than $32 billion into digital-asset startups last year, more than in all previous years combined, according to data firm PitchBook.

Venture capital’s appetite for the sector has remained strong this year even as crypto prices have declined, with firms pumping another $9 billion-plus into the sector, Pitchbook data show. Meanwhile, high-profile investors such as former Andreessen Horowitz partner Katie Haun are launching firms of their own; her Haun Ventures has raised $1.5 billion to start

But even as venture capital has helped transform companies like crypto exchange COINBASE Global Inc. and NFT marketplace OPENSEA into multibillion-dollar giants, there’s tension over what many see as the “Silicon Valleyification” of digital assets.

Powerful and wealthy investors have earned major profits and gained substantial influence over a space that prides itself on decentralization and control by users. That disconnect was on display with the release of ApeCoin, a new governance token tied to the popular Bored Ape Yacht Club NFT collection. When the coin launched, VC firms Andreessen Horowitz and Animoca Brands were part of a group that received a collective 14% of the drop, equivalent to more than $2 billion at prevailing prices.

Today, Yuga Labs — the company behind the NFT collection — announced a $450 million seed round with participation from both Animoca and Andreesen as well as FTX and

It’s true that Bored Ape Yacht Club has boosted crypto’s brand. Celebrities, including rapper Eminem and talk-show host Jimmy Fallon, own the NFTs. The collection has collaborated with Adidas on both physical and digital merchandise. There’s also a Bored Ape virtual game and restaurant in the works.

But the NFT collection is a microcosm of deepening divisions within the industry. At an average cost of hundreds of thousands of dollars per Bored Ape token, these assets, their potential profits and the status that comes from owning them are only available to the elite. Buying an ape-themed tracksuit or burger are just the scraps. Most other NFTs trade at far lower prices, and many struggle to maintain their value or popularity for long.

As wealthy investors and venture capitalists continue to heavily profit from crypto’s rise, more questions will likely crop up about whether this industry is as revolutionary as it claims to be.

Checking it out

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Hearing them out

A former federal prosecutor and veteran of venture-capital powerhouse Andreessen Horowitz describes her perspective as she launches her own investment firm

“I did not fit the mold of the traditional venture investor ... I think we need more people who don’t fit the mold. I think web3 really needs those voices.”

Katie Haun

Founder, Haun Ventures

What we’re reading (and writing)

• Crypto World Awaits El Salvador’s Bite-Size Volcano Bonds
• Katie Haun’s Post-a16z Crypto Venture Fund Raises $1.5 Billion  
• Inside the Push to Turn a Bankrupt Washington Mill Into a Crypto Capital (Seattle Times)
• Argentines Flock to Crypto Games as Economy Eats Up Salaries
• `The Casino Beckons’: My Journey Inside the Cryptosphere (The Guardian)
• Crypto Refugees Fleeing Ukraine Find a Haven in Portugal
• Ray Dalio’s Bridgewater Investing in Crypto: Sources (CoinDesk)

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