Crypto Influencers Are Replacing VCs

Opinion by: Tom Bruni, editor-in-chief and vice president of Community, Stocktwits

Since the dawn of the dot-com boom, it’s almost impossible to hear the term “VC” (venture capitalist) without immediately conjuring up an image of Sandhill Road — and the ultra-exclusive air that surrounds the famed strip of land in Northern California that’s responsible for pouring billions into tech startups each year.  

Silicon Valley VCs and their global counterparts have sat behind literal and metaphorical closed doors for decades. Only a few people decide which innovators and trends receive access to vital funding. 

While it’s become clear that millions of brilliant founders are excluded from receiving capital every year, what’s less understood is the systemic exclusion of countless potential investors who could completely change the game.

That’s why crypto influencers are flipping the script, accomplishing what VCs have been claiming to do for years: democratizing access to early-stage investment opportunities. TradFi might brush them off as “hype merchants.” Still, the fact is, by sharing cutting-edge research and aligning their incentives with their followers, crypto influencers have become some of the most accountable investors in the space.

From hype merchants to revolutionaries

While critics worry influencers are just pump-and-dump operators who intend to manipulate markets and unsophisticated retail investors, this argument ignores the accountability mechanisms automatically put in place by influencer-driven investing. Traditional VCs have the luxury of hiding behind NDAs and other walled gardens, but bad influencer recommendations destroy credibility and receive immediate community feedback. 

Operating in a permanently transparent environment creates permanent accountability. Influencers must maintain higher standards than VCs operating with limited oversight when every trade and outcome is public. At the same time, it’s important to note that moving away from a “no access” model does not automatically result in a “no risk” model. Investors will always have to do their due diligence and act responsibly, even under the guidance of a crypto influencer or online community.

Breaking down the VC exclusivity problem

Before understanding how this new breed of influencers is smashing the VC model, it’s important to explain why the traditional system is so exclusive in the first place. In the US, one must meet accredited investor