Crypto VC Near Standstill as Talent and Capital Shift to AI, Compound GP Says

The diagnosis matters less for its novelty than for its source: a sitting general partner describing a talent and capital rotation out of crypto and into AI, rather than a cyclical funding winter. That framing shifts the debate from market timing to structural competitiveness, and it lands hardest on early-stage crypto teams that depend on token incentives to recruit and retain contributors. Dempsey's split verdict on tokenization — real potential, but weak alignment via incentives — is the thread worth following, since whether builders return depends more on mechanism design than on sentiment.