Why crypto VCs at Consensus Hong Kong are playing a 15-year game

Finance Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email Why crypto VCs at Consensus Hong Kong are playing a 15-year game With capital tightening, investors are backing “what’s working,” like stablecoins and tokenization, while selectively betting on AI and prediction markets. By Jamie Crawley , AI Boost | Edited by Sheldon Reback Feb 11, 2026, 5:01 p.m. Make us preferred on Google Paul Veradittakit of Pantera Capital at Consensus Hong Kong 2026 (CoinDesk) What to know : Capital is concentrating in stablecoins, payments and tokenization as deal counts fall. Venture capitalists cited missed bets (Polymarket) and late pivots (NFTs) as reminders to balance conviction and flexibility. Investors report a “flight to quality,” backing experienced founders and real revenue over hype. The mood among top venture capitalists at Consensus Hong Kong was not retreat, but recalibration, as the crypto market experienced a prolonged downturn. Hasseeb Qureshi, managing partner at Dragonfly, described today’s venture market as a “barbell:” On one side, proven verticals compounding at scale; on the other, a narrow set of high-risk, next-generation bets. STORY CONTINUES BELOW Don't miss another story. Subscribe to the Crypto Daybook Americas Newsletter today . See all newsletters Sign me up By signing up, you will receive emails about CoinDesk products and you agree to our terms & conditions and privacy policy . “There’s stuff that’s working, and it’s just like, scale it up, go even bigger,” Qureshi said, pointing to “stablecoins, payments and tokenization in particular.” In a market that’s cooled from speculative excess, these are the sectors still demonstrating product-market fit and revenue. On the other side is crypto’s intersection with artificial intelligence (AI). Qureshi said he is spending time on AI agents capable of transacting onchain, even though if “you give an AI agent some crypto, it’s probably going to lose it within a couple days.” The opportunity is real, but so are the attack vectors and design flaws. The cautious tone reflects lessons learned. Qureshi said he initially dismissed non-fungible tokens (NFTs) as “definitely a bubble,” only to reverse course months later and back infrastructure plays like Blur . That experience, he said, was a reminder to balance conviction with adaptability in fast-moving cycles. Dragonfly also famously missed an early opportunity in prediction market Polymarket. “We were actually his first term sheet,” Qureshi said of founder Shayne Coplan , but passed when a rival fund offered a higher valuation. “Generational miss,” he called it, although Dragonfly later joined a 2024 round before the U.S. election and is now a major shareholder. The takeaway: Thematic conviction, in this case around prediction markets, can take years to pay off. Maximum Frequency Ventures’ Mo Shaikh argued that venture success in crypto still hinges on long time horizons. His best thesis, he said, wasn’t a trade but a 15-year bet that blockchain could re-architect financial risk systems. “Have a 15-year timeline,” he advised, urging founders and investors to resist 18-month cycle thinking. If the venture environment feels tighter, Pantera Capital’s data supports it. Managing partner Paul Veradittakit said crypto VC capital rose 14% year over year, even as deal count fell 42%, evidence, he said, of a “flight to quality.” Investors are concentrating into “accomplished entrepreneurs” and “tangible use cases.” After more than a decade fundraising in crypto — from $25 million early funds dominated by family offices to today’s $6 billion platform — Veradittakit sees institutions increasingly driving the next leg. But his advice to founders in a softer market was blunt. “Focus on product, market fit … If there is a token, it’ll naturally come.” In a downshifted cycle, the venture message is clear: scale what works, experiment selectively and don’t confuse narrative with fundamentals. Consensus Hong Kong 2026 Venture Capital VC Dragonfly Capital Prediction Markets AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Institutional crypto platform BlockFills reportedly halts withdrawals, restricts trading By Stephen Alpher | Edited by Sheldon Reback 24 minutes ago It's shades of 2022, when any number of crypto platforms were forced to suspend withdrawals as prices crumbled. What to know : Institutional crypto trading platform BlockFills has halted withdrawals and restricted trading, according to multiple reports. 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