When crypto is no longer fun, when Multicoin Capital loses its soul, the industry will face a new era of challenges and transformations. The vibrant innovation and community spirit that once defined the space may fade, leading to a more mature but less exciting landscape. It is crucial to stay true to the core values and continue pushing forward despite these changes.

Author: Gu Yu, ChainCatcher

Today, Kyle Samani, co-founder and managing partner of Multicoin Capital, announced on his social media account that he will step back from daily management and investment decisions at Multicoin Capital, and will explore opportunities outside the crypto industry in other tech fields. The official Multicoin statement later clarified that the fund will continue normal operations, and existing investments and team structure remain unaffected.

“Best Crypto Investor” Steps Back

This is undoubtedly a major news in the crypto VC circle. For a long time, Kyle Samani has frequently written long articles, participated in industry debates, maintained clear stances on investment strategies, and gained recognition for early investments in Solana that yielded hundreds of times returns. He is not only the soul of Multicoin Capital but also one of the most influential investors in the crypto industry.

Previously, Dragonfly managing partner Haseeb Qureshi wrote about his top three favorite crypto investors: Dan Robinson, Chris Dixon, and Kyle Samani, ranking them three, two, and one respectively.

“Kyle is one of the few true contrarian investors in the crypto space. I almost disagree with all his views. But his early investments, and his steadfast belief in holding Solana through the FTX collapse, make him undoubtedly one of the greatest venture capitalists in crypto history,” Haseeb Qureshi wrote.

It is precisely this “greatest in history” who chose to resign at one of the bleakest moments in the crypto industry. The implications are thought-provoking: even top-tier VC investors can no longer persist? After all, a few years ago, even when SOL’s price fell below $10 due to the FTX incident, he still stuck to his investment views and ultimately proved himself with over 25x gains.

Shortly after the announcement, a tweet that Kyle Samani posted earlier on X (formerly Twitter) and quickly deleted was uncovered.

According to available information, Kyle Samani responded to a comment from X user Taran (@Taran_ss), saying: “Cryptocurrency isn’t nearly as interesting as many (including myself) once imagined. I used to believe in the Web3 vision and dApps. Now I don’t. Blockchain is essentially an asset ledger. It will reshape finance, but that’s about it—nothing more. DePIN is another noteworthy area. Crypto will continue to improve, but all the truly interesting questions have already been answered, except for on-chain privacy/confidentiality. (I still believe Zama will win this race).”

In this reply, Kyle Samani clearly states that crypto is no longer interesting and no longer believes in the Web3 vision. Besides reshaping finance, blockchain’s role in other fields is limited. Privacy and DePIN are the only areas he still recognizes.

Multicoin Capital also further confirmed Kyle’s disinterest in crypto in a letter to LPs, stating that “Kyle’s interests have shifted from cryptocurrencies to other tech fields such as artificial intelligence, life sciences, and robotics, and he has decided to dedicate time to exploring these emerging technologies.”

Data also shows that Multicoin Capital’s attitude and strategy are undergoing significant changes. According to RootData, since late 2025, the number of investment rounds participated in by Multicoin has dropped to only 4, and since October 2024, only 10 investments—significantly slowing down from previous levels and trailing behind other well-known VCs during the same period, ranking beyond 50.

Multicoin Capital Investment Round History Source: RootData

These shifts are partly driven by poor market conditions and performance. Among Multicoin’s major investments in recent years, the Wormhole token, valued at $2.25 billion in a round (second only to investments in Forward Industries, FTX, and Solana), now has a fully diluted valuation (FDV) of only $220 million. Pyth Network’s FDV is just $480 million, and Solana’s market cap has again fallen below $100.

Thus, the reason for Kyle Samani’s departure is now very clear: he believes the development direction of crypto has diverged from his expectations and values. The disillusionment with the industry has compelled him to leave this painful place and seek renewed passion in AI, life sciences, and other fields.

Next, Multicoin Capital will have to face the situation after “losing its soul.” Kyle Samani’s exit will undoubtedly raise questions about its future direction and leadership: with investment slowing sharply and organizational restructuring underway, will Multicoin remain one of the most research-driven, conviction-based top VCs in the industry?

The Valley of Ideals

In fact, before Kyle Samani, many other crypto investors and entrepreneurs have expressed similar views, resigning and choosing to step away from the crypto industry. In January, a16z Crypto general partner Arianna Simpson announced her departure and plans to establish a new fund investing across various sectors beyond crypto.

A more notable case is Ken Chan, co-founder and CTO of Aevo. In a November 2025 article, he openly stated that he had wasted eight years of his life on cryptocurrencies and described the industry as “the world’s largest and most active super casino.”

“After eight years in crypto, I’ve completely destroyed my ability to discern sustainable business models. In crypto, you don’t need a successful company or product to make money. The industry is filled with high-market-cap tokens that are almost ignored,” Ken Chan said. “This industry mentality is extremely harmful, and I believe it will lead to a long-term collapse of social mobility among the younger generation.”

A series of such cases are painting a clearer trend: against the backdrop of a persistently tight macro environment, as the crypto market’s wealth effect diminishes, mainstream products face long-term scaling obstacles, and core narratives supporting industry expansion are discredited, the crypto industry is experiencing a phased loss of some of its earliest and most idealistic builders and investors.

This loss does not mean a fundamental rejection of crypto technology but reflects that the patience driven by idealism is being tested by increasingly prolonged realization cycles. Before the return structure, industry order, and long-term expectations are reestablished, some key participants are choosing to exit temporarily.

In recent cycles, many VC investors have emphasized that high returns often occur when the market is “ignored,” and bear markets are the best time to capture alpha. But now, even the “best investors in history” are choosing to turn away at this moment. This itself sends a serious signal to the industry: the problem may no longer be just cyclical market retracements but a phase bottleneck in innovation, value orientation, and narrative vision, possibly undergoing unprecedented scrutiny and reassessment.

Fortunately, more top-tier VCs like Coinbase Ventures, a16z, YZi Labs, and Pantera Capital remain active, with over 30 investments in the past year. For the crypto industry in its adjustment phase, these VC supports may not immediately bring new prosperity, but at least indicate that this round of revaluation has not yet turned into a complete retreat.