Framework Ventures co-founder says DeFi gives hope after FTX crash • TechCrunch

FTX drop will be increase the need for regulation, but also spark long-term interest from venture capitalists looking to invest in decentralized finance (DeFi), according to Michael Anderson, co-founder of Framework Ventures.

“It seems obvious that DeFi is the only way we can continue to do these kinds of financial services operations in the crypto ecosystem,” Anderson told TechCrunch. “It gives us hope and strengthens our resolve that the things we’re pushing for are the right things to work on.”

In April, Framework Ventures launched its third $400 million fund, with about half going to web3 games. Between half and 70% of pitches the company receives are from gaming-related ventures, Anderson said. But the recent situation with FTX has the company “doubling and tripling everything we believe in,” including DeFi and centralized finance (CeFi) regulation.

And while some companies like Multicoin have apparently lost capital stored on the FTX cryptocurrency exchange, Vance Spencer, co-founder of Framework Ventures, said the company had no exposure.

“Regulation is not something we should be against or prevent,” Anderson said. “Sensible regulation makes sense and now that [former FTX CEO Sam Bankman-Fried] has been taken off the table, we can move forward and talk more about centralized finance versus DeFi and the pros and cons of each.”

Leave a Comment