There are just so many emerging trends in crypto, including decentralized AI and blockchain shifts. How tempting it is to chase these trends, however, experts warn that doing so can be risky. In a recent roundtable session with venture capitalists (VCs), they described why investing early is key.
Investing Early Is Important
Nikola Santoni, a partner of Lemniscap, added that it is always preferable to pinpoint long-term demand instead of chasing trends. Crypto and AI are moving fast, but the narrative changes swiftly. It’s all about getting in early, or else investing too late might be too late.
Michael Zajko, Lattice co-founder, concurred that investing ahead of time is the best course of action. DeFi is a perfect example where early movers reaped large rewards.
Don’t Pursue Every New Trend
Ivan Li at Comma3 Ventures cautioned not to pursue every new blockchain or trend. Developments can take years, so concentrate on the technologies with longer-term potential. Li mentioned SUI, which is a blockchain based on Move, as being worth keeping an eye on.
AI in Crypto: It’s Getting Serious
AI is all the rage, but Zajko thinks the crypto AI projects out there today are still very primitive. Within the next few months, anticipate more sophisticated AI that presents real-world utility beyond mere tasks such as tweeting.
Regulation: Both a Risk and Opportunity
Li emphasized the need for regulation. Proper rules can make the space safer but excessive regulation might push innovation out. Zajko also added that US support for cryptocurrency is on the rise, with Bitcoin adoption rising globally.
Crypto’s Inevitable Future
Zajko finalized that the younger generations are already familiar with digital assets and once they become the majority generation, the adoption of crypto will rise organically.
All in all, following trends is risky. To prosper, invest in long-term worth and get in early on excellent technologies.