Union Square (NYSE:SQ) Ventures (USV), one of the top VC firms with the highest returns in the world, intends to take a long-term position in cryptocurrencies. Albert Wenger, managing partner at USV, told CNBC that holding crypto is regarded as an opportunity by the firm. However, the company does not plan to start a separate fund for this.
“We're not planning to do it,” Wenger said about creating a separate entity to invest in digital currencies.
“We see a lot of upside to keeping it under the same roof,” he added.
The New York-based VC firm said that it aims to get involved in several crypto-related investments. For instance, Wenger revealed that his company eyes investment in the US crypto exchange Coinbase.
Even though the crypto market is not doing great these weeks, USV is considering a long-term approach. Wenger said that the company would consider investments in the technology behind application rather than on apps themselves.
“Investors are rationally pouring a lot of money into this sector because I think people are seeing the winning blockchain here might be worth a trillion, or a couple of trillion dollars. It’s not at all crazy to think that,” he noted.
Wenger said that those who invest at this early stage of the blockchain market evolution would be winners even after a considerable correction.
Speaking about initial coin offerings (ICOs), the USV representative said that their image had been relatively compromised by the high number of scams and failed projects. However, he didn’t deny the fact that the method is an innovative financing approach.
Wenger admitted that he held Bitcoin, but recommended investors to invest only what they were ready to lose.
“At the moment, this whole space is a high-risk space, and I don’t think anybody should be investing all of their life savings,” said.
Last week, we reported that Andreessen Horowitz, another VC firm, announced its first crypto-oriented fund.
This article appeared first on Cryptovest
