TechFlow news, December 8 — According to The Block, during the Emergence conference in Prague, two top crypto venture capitalists issued warnings about projects combining cryptocurrency and AI. Dragonfly General Partner Rob Hadick said the AI agent sector is expected to attract hundreds of millions in venture capital funding, but "almost everyone will lose a lot of money," with risks comparable to the 2021 crypto gaming boom.
CoinFund Managing Director David Pakman similarly believes that projects attempting to decentralize core AI infrastructure will struggle to challenge centralized giants like OpenAI, Anthropic, and Microsoft within the current cycle.
Both VCs highlighted a common issue in the crypto industry: "taking things that work well off-chain and moving them on-chain often makes them worse." They noted that AI's greatest value to crypto lies in boosting development efficiency, as software development remains central to the space. However, Pakman expressed relatively optimistic views on the future of AI agents, suggesting that cryptocurrency could provide ideal payment infrastructure for AI agents.
