From 'Token Fantasy' to 'Income Reality', the logic of cryptocurrency investment is undergoing a brutal shift BlockBeats News: On February 9th, Bloomberg published an article stating that the sharp decline in cryptocurrency prices and the emergence of a wave of market mergers have revealed problems in the cryptocurrency industry. It once flourished in a speculative boom, but it is difficult to build sustainable businesses that can generate real income. Nowadays, cryptocurrency venture capital is being pushed towards a more traditional startup logic: product to market matching, profitability, and long-term user retention. Despite facing the White House's pro crypto stance and relaxed regulatory environment, retail demand, which used to be the flywheel of token driven venture capital logic, has dried up. Native crypto funds are shifting towards better performing areas in the market, including stablecoin infrastructure and on chain prediction markets, while some funds are also expanding into adjacent fields such as fintech and artificial intelligence. But as traditional institutions continue to advance, having only native encryption expertise is no longer enough. The market is integrating around something truly effective, "said Santiago Roel Santos, founder and CEO of cryptocurrency private equity firm Inversion. As a category, Web3 currently lacks significant investment value. People have moved away from NFTs, games, and the next DeFi platforms that are born for existence and lack innovation. Even cryptocurrency native venture capitalists with funds are vigorously shifting towards fintech, stablecoins, and prediction markets. Everything else is struggling to gain attention. '' Native crypto funds like Mechanism Capital and Tangent have begun to shift their focus towards deep tech areas, including investing in robotics startups such as Apptronik and Figure, marking a shift in investment focus away from the core crypto field. Funds are withdrawing from high-risk bets such as NFTs, Web3 social platforms, and blockchain games, which once defined the speculative narrative of early cycles. The indicators that are currently being focused on - revenue, user retention, and willingness to pay - were often overlooked in the early stages of the cycle, when narrative heat, token liquidity, and market share became substitutes for measuring project attractiveness. Catrina Wang, general partner of Portal Ventures, stated that this has led some native crypto venture capitalists to expand into the fintech or artificial intelligence fields. I wouldn't be surprised to see more funds quietly closing or scaling back in the future, "said Tom Schmidt, general partner of venture fund Dragonfly. They also face fierce competition from traditional venture capitalists for the hottest deals in the Web 2.5 field