Multicoin Capital managing partner Tushar Jain said, the cryptocurrency venture capital sector still hasn’t adapted to the realities of the post-pandemic downturn

He believes the market is experiencing a “hangover” after the huge amount of money poured into the venture capital sector between 2021 and 2022. Many are simply not ready to accept the current reality.In 2021, investors poured $33 billion into crypto startups, with companies like OpenSea and BlockFi becoming unicorns. However, Jain believes their valuations have been inflated.He also pointed to broader market problems: many project promises remain unrealized, token prices aren’t rising, and the political situation is creating additional uncertainty. All of this creates a sense of stagnation and frustration in the market, despite previous bursts of enthusiasm and hype.Despite this, Jain still believes in the fundamentals of the industry, noting that cryptocurrencies are one of the most cyclical markets. He added that Multicoin Capital will continue to invest his fund, but has no plans to raise new money in the near future.