The demise of FTX will According to Michael Anderson, co-founder of Framework Ventures, increasing the need for regulation, but also arousing the long-term interest of venture capitalists looking to invest in decentralized finance (DeFi).
“It just seems clear that DeFi is the only way we can continue to do these kinds of financial services in the crypto ecosystem,” Anderson told londonbusinessblog.com. “It gives us hope and reinforces our resolve that the things we strive for are the right things to work on.”
In April, Framework Ventures launched its third fund for $400 million, about half of which was for web3 gaming. Wherever half to 70% of the pitches the company gets are gaming-related companies, Anderson said. But the recent situation with FTX has led the company to “double and triple everything we believe in,” including DeFi and regulation of centralized finance (CeFi).
And while some companies like Multicurrency have apparently lost capital stored on FTX’s crypto exchange, Framework Ventures co-founder Vance Spencer said the company had no exposure.
“Regulation is not something we should be against or avoid,” Anderson said. “Sensible regulation makes sense and now that [former FTX CEO Sam Bankman-Fried] off the table, we can move forward and speak out more about centralized finance versus DeFi and the pros and cons of each.”