The recent downturn in the cryptocurrency market has highlighted significant discrepancies between the valuations set by venture capitalists and the actual market caps of various blockchain startups. For instance, the Humanity Protocol is now valued at approximately $285 million, down from a previous venture valuation of around $1 billion. Similarly, the Fuel Network, once valued close to $1 billion, currently trades at about $11 million.
This trend is not isolated, as several other projects are also experiencing sharp declines. The market capitalization of Plasma has dropped from a venture valuation of $500 million to around $224 million. In contrast, ICNT has seen its valuation fall from $470 million to approximately $247 million.
Projects such as Camp Network and Treehouse are facing even larger reductions, now valued at about $15 million and $16 million, respectively, despite earlier valuations of around $400 million. This trend emphasizes the need for cautious investment strategies, as noted by Fundraising Digest, which cautioned investors to carefully assess risks across various potential outcomes.