Crypto VC Activity Nearly Stalled as Compound Managing Partner Says Talent and Capital Are Shifting to AI

Odaily: Michael Dempsey, Managing Partner at Compound, said that crypto venture capital has been in a slump for nearly two years and is nearing a standstill, with this stagnation traceable to 2024. Developers who once entered the crypto space are now shifting to AI, and capital is flowing to AI along with them. Dempsey also noted that tokenization has real potential, but token incentives struggle to achieve long-term alignment of interests.