Crypto Unicorns Are on Notice as VC Backers Gird for Slump

The crypto market’s recent crises are prompting some major soul-searching among a very important constituency: the venture capitalists who have pumped billions of dollars into the industry over the past two years.

The startups backed by these investors have floundered amid a crippling market downturn. Layoffs have swept across some of the biggest names in blockchain such as Coinbase Global Inc., Gemini Trust Co. and Crypto.com. Companies like BlockFi Inc. are looking to raise capital at lower valuations and projects like the Terra blockchain and Celsius crypto lending platform are in crisis.