On July 21, Haseeb Qureshi, managing partner at Dragonfly, warned that the crypto venture capital model may disappear within the next four years.
Qureshi points to two major trends reshaping the industry: increasing centralization and a decline in early-stage crypto startups worthy of venture funding.
He first voiced this view in 2022, stating plainly that crypto VC would not survive beyond 2030. Now, he is reinforcing that timeline instead of retracting it.
Despite running a firm that just raised $650 million in February 2026, Qureshi sees this capital influx as a sign of consolidation in the sector. Large funds like Dragonfly are growing, while smaller, niche crypto VCs face difficulties securing or deploying funds.
According to him, investment is not leaving crypto altogether but shifting toward areas like AI integration, stablecoins, privacy tech, tokenization of real-world assets, and fintech infrastructure.
This shift matters for early crypto entrepreneurs who might soon have to approach generalist venture capitalists, who focus more on traditional financial metrics than crypto-specific factors like tokenomics or community engagement.
Watching where Dragonfly allocates its $650 million in the coming 12 to 18 months will reveal if Qureshi truly believes pure crypto venture investing is in decline.
This article offers information for understanding industry trends and is not financial advice.
