TechFlow news, September 13 — Will Clemente, co-founder of Reflexivity Research, said on X that unless altcoins enter a "substantial bull market," fewer crypto projects will be able to raise funding, leading to a decline in the overall altcoin market valuation.
Clemente emphasized a fundamental difference between individual strategic trading of altcoins and institutional fund allocation in cryptocurrency. He noted that many funds—using capital typically raised from other investors or funds—are long-term locked into underperforming altcoin projects, some for as long as four to five years.
"Too much capital has been allocated to funds that are now clearly underperforming benchmarks, primarily holding 'beta' assets," Clemente warned. He predicted this situation could lead to reduced future inflows into such funds, triggering lower valuations and greater fundraising difficulties for crypto projects.
