Crypto.com’s Venture Unit Is Wary of Bloated Industry Valuations

Crypto.com’s venture capital arm is dubious about the sustainability of surging valuations in the sector, the digital-asset exchange’s Chief Executive Officer Kris Marszalek said.

His observations come amid a notable pickup in billion-dollar funding rounds for early-stage crypto startups following the latest rally in virtual currencies. The deals are a reminder of the investment frenzy that accompanied the pandemic-era bull run in tokens, with very mixed results.

“We want the financial return,” Marszalek said in an interview Tuesday. “At this moment, valuations being thrown around by project teams are very generous.”

Crypto.com Capital— which had $500 million to invest ...