South Korea stands out as a major player, boasting the world’s second-largest crypto market where nearly one in three adults owns cryptocurrency. This remarkable statistic underscores the importance of Asia in the global crypto landscape.

A16z Crypto’s Strategic South Korea Office

The decision to open a South Korean office is part of a broader strategy to provide go-to-market support for portfolio companies. By doing so, a16z aims to accelerate growth, foster strategic partnerships, and build lasting communities throughout Asia. “Our expansion will offer invaluable support to companies looking to scale rapidly,” said Anthony Albanese, managing partner and COO of a16z crypto.

The firm has appointed Sungmo Park, formerly APAC lead at Monad and Polygon, to spearhead its efforts in the region. Park’s role will involve working closely with companies and founders to enhance market connectivity and promote crypto adoption across the Asia-Pacific region.

Sungmo Park’s Vision for A16z Crypto

Park expressed his dedication to supporting exceptional founders through a16z crypto. “We provide not just capital but also hands-on support to help them grow into transformative companies,” he shared in a post on X. Leveraging his extensive network and experience, Park is committed to helping a16z crypto’s founders navigate new markets and gain the regional knowledge necessary for scaling effectively.

A16z crypto, known for backing numerous blockchain startups such as Aptos, Dapper Labs, EigenLayer, and Yuga Labs, has raised over $7.6 billion across four funds. This financial strength positions the firm to make a significant impact in the Asian crypto scene.

The venture capital fund’s expansion into South Korea signifies a powerful endorsement of the region’s potential and a commitment to fostering innovation in the cryptocurrency industry.

Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry.

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Understanding the Rise of Crypto Treasury Deals

Throughout 2025, the prominence of crypto treasury deals has been unmistakable. According to data from The Block Pro, venture capital rounds for crypto startups, excluding DATs and token sales, have dropped dramatically. The number of these rounds fell from 1,933 in the previous year to just 856, marking a 56% decrease.

The total funding witnessed a reduction from $8.13 billion in the January–August period of 2024 to $8.05 billion in 2025. This figure, however, is inflated due to Binance’s substantial $2 billion raise in March. Without this, traditional funding plummeted to $6.05 billion, reflecting a 26% year-over-year decline.

Why VCs Favor Crypto Treasury Deals

Investors are gravitating towards crypto treasury deals for several compelling reasons. DATs offer immediate mark-to-market pricing and enhanced liquidity compared to conventional ventures. Additionally, when trading at a premium to net asset value (mNAV), they provide opportunities to raise more funds, acquire more crypto, and increase NAV per share.

Currently, liquid funds dominate the scene, with some VCs utilizing DATs as a temporary haven for idle capital. As noted by Ed Roman, co-founder of Hack VC, the appeal of DATs is clear, but their long-term viability will depend on the stability of mNAV multiples, especially in Bitcoin and altcoin-focused DATs.

Shifts in Venture Capital Strategy

A sharper focus on fundamentals has also contributed to the slowdown in early-stage venture activity. Investors are now prioritizing revenue-generating protocols with tangible value capture rather than mere narratives. Projects like Hyperliquid, which channel significant revenue back to token holders, have raised the bar for new startups.

Cosmo Jiang of Pantera Capital describes the shift away from backing valueless tokens as a healthy reset. The focus has returned to equity and revenue, moving away from speculative token launches.

Market Frictions and Future Prospects

Beyond DATs, broader market frictions are constraining early-stage funding. The post-2021 boom era has made it challenging for smaller crypto funds to secure backing, leading to limited “dry powder” for early-stage deals. Jed Breed of Breed VC highlights the cooling appetite among limited partners for small VCs.

Despite tighter capital availability, the quality of deal flow has improved. Teams now present with revenue models, compliance, and distribution channels, particularly in stablecoin projects. This trend signals a more mature and discerning investment landscape.

Opportunities remain underfunded, particularly in sectors like decentralized physical infrastructure networks (DePINs) and DeFi protocols with proven revenue models. Zero-knowledge technology and on-chain intellectual property are also emerging as promising areas.

The Future of Crypto Treasury Deals

Most VCs agree that crypto treasury deals will persist, albeit with a likely shakeout. Experts foresee a compression of NAV premiums, with a few large-scale DATs dominating the market. However, there’s a cautionary note on the proliferation of similar DAT strategies, which could face a significant shakeout during the next crypto downturn.

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Twenty One Capital’s total funding reached a whopping $685 million after its investors opted to buy more convertible bonds. The backers of Twenty One Capital increased their investment by an additional $100 million in convertible senior secured notes, pushing the total funding of the Bitcoin treasury to $685 million.

Twenty One Capital, which had recently disclosed ambitious plans to acquire billions of dollars’ worth of Bitcoin, has also announced the launch of a proof of reserves, a public ledger confirming its Bitcoin treasury assets.

In other significant news, decentralized computing layer aZen closed a $1.2 million seed round, led by Waterdrip Capital with additional contributions from DWF Ventures, Rootz Labs, and Mindfulness Capital among others. The platform is developing decentralized physical infrastructure networks (DePINs) for AI applications, reducing dependency on advanced chips amid supply chain disruptions.

Securitize, a tokenization platform, received an undisclosed investment from venture capital firm Jump Crypto. This marks Securitize’s first investment since BlackRock’s $47 million allocation in 2024. Securitize is now the largest tokenization market, with $4 billion in onchain assets.

UK-based tokenization company Savea received $2.5 million in seed funding to support its quest to launch tokenized investment products backed by scarce assets, such as wine, luxury watches, and classic cars. The round was led by venture studio EmergentX.

Lastly, self-custodial crypto wallet Dexari successfully closed a $2.3 million seed round. The funding will be used to further improve Dexari’s wallet, which also serves as a mobile trading app. Dexari, built on Hyperliquid, is hailed by Roderik van der Graaf, founder, and managing partner of Lemniscap, as “setting a new standard in crypto UX” away from complexity.

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The current market climate seems to favor these companies, encouraging their proliferation. Companies like Strategy and Metaplanet are trading at significant premiums compared to their cryptocurrency reserves. The ‘MNAV multiples’ – market cap divided by net asset value (NAV) – of these firms is a major selling point for VCs and analysts. This premium enables firms to raise capital more easily and acquire more cryptocurrency, creating a positive feedback loop.

Arrington Capital’s partner and CIO, Ravi Kaza, argues that these treasury strategies are inherently reflexive. The higher their MNAV valuation sustains, the more capital they can raise to purchase specific treasury assets. Arrington Capital has already backed four such crypto treasury companies this year including SharpLink Gaming (ETH), Nakamoto/KindlyMD (BTC), DeFi Development Corp (SOL), and Matador Technologies (BTC).

But not all investors are sold on this model. Thomas Klocanas, managing partner at Strobe Ventures, and Rob Hadick, general partner at Dragonfly, are avoiding crypto treasury companies. They see these as speculative trades rather than long-term, fundamentals-driven venture bets. This skepticism is further amplified by the potential risks and challenges these companies could face in a market downturn.

Many agree that while more companies will adopt this strategy, only a handful will prove to be long-term winners. The key to survival in a market downturn is betting on management teams that have a solid plan for the inevitable next crypto bear market. This includes raising capital on accretive terms, avoiding mark-to-market debt, and preparing for stress scenarios while times are good.

Despite warnings of overcrowding and hype, the crypto treasury trend continues to draw interest. But as with any investment, the risks must be acknowledged. Excessive leverage, poorer-quality assets with insufficient institutional demand, and overmarketing could lead to potential pitfalls, making it vital for investors to tread cautiously.

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With a starting investment of $100 million, comprising both Pi (PI) tokens and US dollars, Pi Network Ventures aims to boost startups and businesses that are contributing to the expansion of the Pi Network’s ecosystem. The strategic program is focused on empowering top-tier startups and companies across various sectors, thus fostering innovation and driving growth within the ecosystem.

The Pi Foundation, which lies at the heart of the Pi Network, operates as an “ownerless” entity, with its primary function being to support the long-term development of the ecosystem. The newly unveiled venture fund will be sourced from the 10% of Pi tokens that were set aside for ecosystem initiatives.

What is the objective of Pi Network Ventures? The goal is to enhance the utility of Pi by investing in businesses and startups that incorporate it into their products and services. The new entity will also strive to bring more applications, transactions, and companies onto the network, while also exploring new use cases:

“By aligning incentives and providing resources to high-potential founders, startups and companies, this initiative aims to create a feedback loop of innovation and adoption.”

Unlike other crypto ecosystem initiatives, Pi Network Ventures intends to support startups from their infancy stages until Series B funding and beyond. This strategy gives access to high-potential innovators and aids in the scaling of established businesses. Moreover, the investment fund plans to expand into general technology sectors, such as generative AI and AI applications, fintech, embedded payments, e-commerce platforms, marketplaces, social networks, and real-world consumer and enterprise applications.

Another unique aspect of Pi Network Ventures is its adoption of a traditional Silicon Valley venture capital firm approach, particularly in sourcing, selection and vetting processes. The goal is to identify and back high-impact and disruptive startups and companies.

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“I might be early, but it feels like we’re near the bottom,” Hartmann expressed in a post on Feb. 8. He pointed out that funding rates, which ensure a balance between futures and spot market prices, have been in the negative for some time. This indicates a market with more sellers than buyers.

Moreover, he mentioned that “quality alts” have retraced back to their long-term trendlines, erasing the gains made in Q4 of 2024. For instance, Ethereum (ETH) traded above $4,000 in December 2024 and was speculated to retest its November 2021 peak of $4,878. However, it has since retreated to $2,639. Similarly, Solana (SOL) hit a record high of $295 on Jan. 19 but has since fallen to $201.15.

The overall market cap of memecoins also declined by 32.38% by the end of December 2024. Crypto analyst Matthew Hyland suggested that the market might need at least two months, if not more, to revisit the highs seen in December.

According to Hartmann, the overall sentiment in the crypto market is “absolutely wrecked,” which is often a precursor to a rally. The Crypto Fear and Greed Index, a measure of market sentiment, currently reads a “Fear” score of 46, down 14 points from last week’s “Greed” score of 60.

Bitwise’s Chief Investment Officer, Matt Hougan, recently stated that “retail sentiment is the worst it’s been in years.” However, he also highlighted a “massive disconnect” with professional investors, who remain “extraordinarily bullish.”

While Hartmann acknowledged that the crypto market might continue to be volatile, he suggested that we might be at the “tail end” as most unlocked venture capital token allocations have been liquidated over the past two quarters. Between March and October 2024, token unlocks released assets worth $35 billion, significantly increasing the market supply.

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Investing in Web 3.0

Venture capital funds investing in Web 3.0 are not an anomaly. The investments extend from institutional funds to specialized crypto funds. Nevertheless, the investment approach is different from elementary venture capital. The notable instance is the global adoption of public sales, such as decentralized and initial trade offerings.

It enables acquisition to investment deals allowing increased investors to participate in the investment. Also, it reduces coordination overhead and entry barriers. Several Web 3.0 projects are piloted by a community-driven DOA. Here, the decisions regarding investments are vetted by the vote of the community.

Adding value to web 3.0

There are numerous support and services that virtual currency offers to start-ups. Virtual currency funds support the companies with legal advisory, mentoring, marketing, recruiting, and other services. After all, they possess a relinquishing interest in the success of the start-ups and will assist them wherever needed.

Nonetheless, Web 3.0 will principally change the sense of ‘smart money’ for projects. The decentralized autonomous organizations do not feature a chief entity to grant these supplementary services. The venture capital funds that support the Web 3.0 projects offer additional services via community engagement.

A basic example of a virtual currency fund that leans into the current value contribution form is Andreessen Horowitz. It features $2.2 billion crypto fund III, and actively participates in the administration of their projects, for instance, Uniswap.

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