Charles Hoskinson: "Instead of investing in Cardano, VCs are ready to lose money in Terra and FTX"

Cardano founder Charles Hoskinson is frustrated that most venture capital firms are not ready to invest in projects based on this blockchain.

Recently Pavia Metaverse COO Paul Manuel joined Twitter that VCs are refusing to invest in Pavia because the project is based on the Cardano blockchain. Patrick Tobler, founder of NMKR, a Web3 framework powered by Cardano, confirmed Manuel's claim. Tobler said he received a letter from a venture capitalist saying he would not invest in any Cardano-related project.

“Over the past few months, I have had several conversations with venture capital companies. When we mentioned that our project was running on the Cardano blockchain, they flinched and said, “No thanks. We make risky investments, but we cannot intentionally take risks,” Manuel tweeted.

Charles Hoskinson responded to these comments by writing that risky entrepreneurs are more likely to invest in failed crypto projects like Terra and FTX. After the collapse of the Terra ecosystem in May, Hoskinson wondered why VCs hate stable Cardano and love other altcoins. He mentioned Galaxy Digital CEO Michael Novogratz, who got a tattoo inspired by the LUNA cryptocurrency.

In an interview at the Cardano Mainnet 2022 event, Hoskinson suggested that the only way to generate interest from venture capitalists is if a few Cardano-based decentralized applications are valued at several billion dollars. This can be expected in 2023-2024, Hoskinson said.

In October, the head of Cardano expressed dissatisfaction with the fact that Coindesk did not include him in the list of the most influential people in the cryptocurrency space.