More Web3 Company Failures Are Predicted in 2023, According to a Tech Investor

Web3
Share on linkedin
Share on facebook
Share on twitter
Share on reddit

Fred Wilson, a prominent investor in the technology sector and co-founder of Union Square Ventures, discusses his predictions for the year 2023. In spite of the fact that he believes web3 businesses will continue to face challenges, he is optimistic about ETH initiatives.

Wilson forecasts in the blog post he published on January 1 that in the first half of 2023, as inflation decreases and the global economy slows down, central banks would ease off on the tightening measures they have been implementing recently. It is his prediction that interest rates would reach a stable level in the first half of 2023. In addition to this, he is adamant that there be a “soft landing” or a moderate economic contraction.

In 2023, web3 startups will encounter a variety of challenges as a direct result of the cooldown. A good number of them are currently experiencing losses and will have a need for capital in 2023. Because of this, there will be an excessive number of new enterprises looking for capital this year. Wilson believes that the businesses that already have actual token economics and deploy new features fast will be the ones to draw fresh interest in the cryptocurrency space.

According to Wilson’s view, huge web3 caps like bitcoin and ethereum projects will perform well in 2023. As a result, Wilson is particularly positive on these projects:

“From a purely financial perspective, I am more positive about ETH since it has the finest underlying economic model of any web3 asset,”

Fred Wilson, an investor in technology
However, investors still need to exercise caution while making investments in web3 in 2023 since volatility will continue to exist in the cryptocurrency market:

“While there are compelling benefits to be found in web3, I am not yet persuaded that it is safe to get back into the ocean at this moment unless you have a very strong stomach and a very long time horizon,” said the researcher.

The Web3 ecosystem, led by tech investor Fred Wilson, had a number of challenges in 2022, including a number of costly hacks and a number of high-profile bankruptcies. These problems added another layer of difficulty to an already difficult macro environment, which had an effect on the IT industry as a whole. A substantial number of businesses, including industry titans like Coinbase and Crypto.com, had to reduce their workforces or take other cost-cutting steps as a result of the crypto winter.

 

Share This Article:

Share on linkedin
Share on facebook
Share on twitter
Share on reddit

Related Posts