New York venture company Union Square Ventures, whose assets are measured in billions of dollars, said that it is investing in large cryptocurrencies, focusing on long-term prospects.
Founded and managed by Fred Wilson, a well-known venture capitalist who took part in the early stages of financing companies such as Twitter, Tumblr, Zynga, Etsy and Coinbase, Union Square Ventures in recent years has collected a portfolio of successful startups working in the blockchain space and beyond outside.
This week, in a conversation with CNBC, managing partner of Union Square Ventures Albert Wegner said that his company is interested not only in start-ups from the digital currency segment, but also directly in the cryptocurrencies in which it has already invested a significant part of its assets and is not going to stop there.
At the same time, the venture company is not yet ready to open a large specialized fund for working with cryptocurrencies, as Andreessen Horowitz did, another leading venture company that recently launched a $300 million cryptocurrency fund.
“We do not plan to do this,” – said Wegner. “We see enough incentive to not take this beyond our core business.”
Wegner believes that the cryptocurrency, which can survive the stage of getting rid of the bubbles in the market, will in future have a capitalization of several trillion dollars.
“Investors are reasonably investing a lot of money in this sector, because people understand that the victorious blockchain can cost a trillion or a couple of trillions. Definitely, any single project has extremely high chances of failure. But if it works, then the reward will be very high,” he says.
For several years, Wegner has invested in cryptocurrencies and is studying the market. The analyst recommends investors not to keep bitcoin in the hope that it will remain the leading cryptocurrency, and consider alternative options, especially if they invest a significant part of their money in them.
“I do not think you should stay in this space and say: “I will only keep bitcoin.” Now this market is characterized by a high degree of risk, so I do not recommend investing all your money in it,” he advised. “What really works will come to the top. It may not happen so quickly, but eventually it will happen.”