Anonymous fundamentals of the crypto market become a real problem as more investors prefer to back startups with no real information about product developers in return.
And that issue sparked when decentralized finance (DeFi) project Wonderland turned out to be associated with Michael Patryn, who had served 18 months in federal prison for fraud, The New York Times (NYT) reports. Shortly after the news broke, the price of the Wonderland token, $TIME, crashed significantly, forcing many investors to capitulate.
But it doesn't seem that the incident with Wonderland changed any plans for venture capitals, who are ready to spend millions on crypto projects fully developed by anonymous users.
Amy Wu, the head of FTX Ventures, told NYT she collaborated with anonymous investors. She emphasized it doesn't matter if you know with whom you are working if you are sure they are experts in the industry.
Earlier this year, the cryptocurrency exchange FTX launched its own investment arm focused on "great products." The VC's description says:
We measure time horizons in decades. We don’t mind if you’re anon. We won’t ask you to present in front of an investment committee.
According to the report, anonymity plays a vital role in the crypto market as the industry still remains unregulated. While some say a regulatory crackdown could make them cross the line, others claim they dislike the attention.