DeFiance CEO: Crypto venture capital is dead; in the future, only pure cash flow businesses will be invested in

Odaily Planet Daily reports that DeFiance Capital CEO Arthur posted on X stating that the cryptocurrency market has undergone a complete transformation — shifting from a valuation system supported by venture capital and centered on growth, to one focused on generating short-term cash flow, as this is the most likely path to deliver substantial returns to investors. Investors who have not yet understood this shift will only endlessly consume capital.

Arthur: “Venture capital-style crypto is dead, cash flow-style crypto is eternal. Moving forward, all new projects I invest in must be purely cash flow businesses, capable of recouping all invested capital within 6 to 12 months, and achieving 3 to 5 times returns solely through cash flow. Any concept projects that only hype growth will no longer work.”

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