Crypto Basics

Top 10 Crypto Venture Capital Funds for Investment in July 2025

Discover the top 10 crypto VC firms including Token Metrics Ventures, Polychain, and Coinbase Ventures. Learn how they invest and what makes them the best in 2025.
Token Metrics Team
8 min
MIN

Crypto venture capital (VC) is evolving rapidly, driving innovation across Web3, blockchain infrastructure, DeFi, AI, and tokenized assets. As the crypto market matures, venture capital firms that identify and back high-potential projects are shaping the future of finance and technology.

In 2025, savvy investors and founders alike are turning to leading crypto VC funds for capital, connections, and credibility. These firms are not just investors—they’re ecosystem builders.

Here are the 10 best crypto venture capital funds to watch and invest alongside in 2025, whether you’re a retail investor following their portfolio, a founder raising capital, or an institutional player tracking Web3 trends.

1. Token Metrics Ventures

Overview:
Token Metrics Ventures (TMV) stands at the intersection of AI-powered analytics and high-conviction early-stage investing. Leveraging proprietary on-chain data, predictive AI models, and investor-grade metrics, TMV identifies moonshot crypto projects long before they trend.

Why It’s Hot in 2025:

  • TMV leverages data from the Token Metrics Research and Trading Platform, giving it an unparalleled edge in scouting high-alpha investments.
  • Backed successful early-stage tokens in DePIN, AI, and L2 rollup ecosystems.
  • Offers public transparency into portfolio performance through the Token Metrics Index.

Notable Investments:
Our notable investments are, Pixels, Vana, Andrena, Peaq, My Pet Hooligans, 0G Labs and Nillion. You can also add a link to our portfolio page.

Edge:
AI-first investing methodology that rivals traditional research firms, giving TMV a futuristic edge in discovering breakout assets before the herd.

2. Digital Currency Group (DCG)

Overview:
Founded in 2015, DCG is one of the earliest and most influential crypto-focused venture capital firms. DCG is the parent company of Grayscale, Foundry, and formerly CoinDesk.

Why It’s Hot in 2025:

  • Despite facing challenges in 2023–2024, DCG has restructured and returned with a sharper focus on Layer 2s, RWA tokenization, and institutional-grade infrastructure.
  • Its strategic relationship with Grayscale offers unique exposure to regulated crypto products.

Notable Investments:
Chainalysis, Circle, Fireblocks, and Coinbase (pre-IPO).

Edge:
Massive institutional network and historical pedigree as an early mover.

3. Multicoin Capital

Overview:
Multicoin Capital is a research-driven crypto VC fund focused on long-term bets in token economies, especially around smart contract platforms and DeFi.

Why It’s Hot in 2025:

  • Multicoin doubled down on Solana ecosystem plays and modular blockchain infrastructure in 2024–2025.
  • Actively invests in open-source middleware, oracle systems, and AI x crypto crossovers.

Notable Investments:
Solana, Helium, Render, and LayerZero.

Edge:
Deep thesis development, frequent publication of detailed investment memos, and contrarian bets that often pay off big.

4. Distributed Global

Overview:
Distributed Global focuses on building out foundational blockchain infrastructure, including scalability, privacy, and cross-chain interoperability.

Why It’s Hot in 2025:

  • Quietly involved in powering modular ecosystems like Celestia, EigenLayer, and Appchains.
  • Maintains a strong technical team with deep protocol-level insight.

Notable Investments:
StarkWare, zkSync, and Arweave.

Edge:
Strong technical due diligence and early backing of scalable blockchain solutions.

5. Dragonfly Capital

Overview:
Dragonfly Capital is a global venture capital firm that bridges crypto ecosystems between the U.S., Asia, and Europe.

Why It’s Hot in 2025:

  • Strong focus on liquidity provisioning, trading infrastructure, and multi-chain development.
  • Strong ties with centralized exchanges and DeFi protocols.

Notable Investments:
1inch, Amber Group, MakerDAO, and NEAR Protocol.

Edge:
Cross-border insight and the ability to scale projects globally across diverse regulatory landscapes.

6. YZi Labs (formerly Binance Labs)

Overview:
YZi Labs emerged in 2025 following the spinout and rebranding of Binance Labs. It retains the same DNA: a hyperactive investor in seed-stage Web3 startups with a strategic exchange distribution edge.

Why It’s Hot in 2025:

  • Despite regulatory shake-ups, YZi Labs has doubled down on AI x Web3, GameFi, and Real World Assets (RWA).
  • Still benefits from exchange-native insight and product-market fit validation via Binance listings.

Notable Investments:
DODO, Dune Analytics, Trust Wallet, and numerous Binance Launchpad tokens.

Edge:
Massive retail distribution power and exchange insights few others can replicate.

7. Coinbase Ventures

Overview:
Coinbase Ventures is the venture capital arm of Coinbase, one of the world’s largest and most regulated crypto exchanges.

Why It’s Hot in 2025:

  • Continues to back strategic ecosystem plays that align with Coinbase’s product roadmap and regulatory direction.
  • Focuses on identity, compliance tooling, and tokenized securities.

Notable Investments:
OpenSea, Compound, Alchemy, and BlockFi.

Edge:
Strong synergy with Coinbase product launches and listing potential for portfolio companies.

8. NGC Ventures

Overview:
NGC (Neo Global Capital) Ventures is a globally recognized fund based in Asia with a strong track record in infrastructure and protocol-level investments.

Why It’s Hot in 2025:

  • Focus on Asia-Pacific blockchain adoption trends.
  • Strong interest in DePIN, AI-powered consensus models, and zero-knowledge cryptography.

Notable Investments:
Algorand, Oasis, and Thorchain.

Edge:
Access to emerging Asian markets and strong strategic partnerships with local governments and enterprises.

9. The Spartan Group

Overview:
The Spartan Group is an Asia-based crypto VC and advisory firm, known for high-conviction investments in DeFi and Layer 1 ecosystems.

Why It’s Hot in 2025:

  • Expanded its portfolio into permissionless AI tools, modular consensus, and tokenized derivatives.
  • Maintains a boutique, high-touch approach to investments.

Notable Investments:
dYdX, Aave, Terra (before the collapse), and Pendle.

Edge:
Highly thesis-driven and nimble with an elite advisory network.

10. Polychain Capital

Overview:
Founded by Olaf Carlson-Wee, Polychain Capital is one of the largest crypto-native VC funds and remains a powerful force in the space.

Why It’s Hot in 2025:

  • Polychain continues to double down on privacy-preserving tech, zk rollups, and cross-chain solutions.
  • Early investor in bleeding-edge projects in cryptography, AI, and DAOs.

Notable Investments:
Filecoin, Avalanche, Tezos, and Compound.

Edge:
Massive AUM, strong LP network, and deep conviction in crypto’s long-term vision.

Conclusion: How to Leverage These Funds as an Investor

You don’t need to be a millionaire LP to benefit from the research and capital allocation of top crypto venture funds. Here’s how:

  • Track their portfolio: Use tools like Token Metrics, CryptoRank, and Messari to follow what these VCs are investing in.
  • Mirror their trades: Look for public tokens in their portfolios and evaluate entry points.
  • Join their ecosystems: Many funds support incubators and hackathons—ideal for developers and builders.

In 2025, VCs will be the kingmakers of crypto. By following their moves, retail investors can gain a massive edge in identifying the next moonshot projects before they explode.

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Token Metrics Team
Token Metrics Team

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Research

Mastering Discord Integrations: API Essentials

Token Metrics Team
5
MIN

Discord's API is the backbone of modern community automation, moderation, and integrations. Whether you're building a utility bot, connecting an AI assistant, or streaming notifications from external systems, understanding the Discord API's architecture, constraints, and best practices helps you design reliable, secure integrations that scale.

Overview: What the Discord API Provides

The Discord API exposes two main interfaces: the Gateway (a persistent WebSocket) for real-time events and the REST API for one-off requests such as creating messages, managing channels, and configuring permissions. Together they let developers build bots and services that respond to user actions, post updates, and manage server state.

Key concepts to keep in mind:

  • Gateway (WebSocket): Streams events like messages, reactions, and presence updates. It's designed for low-latency, event-driven behavior.
  • REST API: Handles CRUD operations and configuration changes. Rate limits apply per route and globally.
  • OAuth2: Used to authorize bots and request application-level scopes for users and servers.
  • Intents: Selective event subscriptions that limit the data your bot receives for privacy and efficiency.

Authentication, Bot Accounts, and Intents

Authentication is based on tokens. Bots use a bot token (issued in the Discord Developer Portal) to authenticate both the Gateway and REST calls. When building or auditing a bot, treat tokens like secrets: rotate them when exposed and store them securely in environment variables or a secrets manager.

Intents let you opt-in to categories of events. For example, message content intent is required to read message text in many cases. Use the principle of least privilege: request only the intents you need to reduce data exposure and improve performance.

Practical steps:

  1. Register your application in the Developer Portal and create a bot user.
  2. Set up OAuth2 scopes (bot, applications.commands) and generate an install link.
  3. Enable required intents and test locally with a development server before wide deployment.

Rate Limits, Error Handling, and Scaling

Rate limits are enforced per route and per global bucket. Familiarize yourself with the headers returned by the REST API (X-RateLimit-Limit, X-RateLimit-Remaining, X-RateLimit-Reset) and adopt respectful retry strategies. For Gateway connections, avoid rapid reconnects; follow exponential backoff and obey the recommended identify rate limits.

Design patterns to improve resilience:

  • Rate-limit-aware clients: Use libraries or middleware that queue and throttle REST requests based on returned headers.
  • Idempotency: For critical actions, implement idempotent operations to safely retry failed requests.
  • Sharding: For large bots serving many servers, shard the Gateway connection to distribute event load across processes or machines.
  • Monitoring & alerting: Track error rates, latency, and reconnect frequency to detect regressions early.

Webhooks, Interactions, and Slash Commands

Webhooks are lightweight for sending messages into channels without a bot token and are excellent for notifications from external systems. Interactions and slash commands provide structured, discoverable commands that integrate naturally into the Discord UI.

Best practices when using webhooks and interactions:

  • Validate inbound interaction payloads using the public key provided by Discord.
  • Use ephemeral responses for sensitive command outputs to avoid persistent exposure.
  • Prefer slash commands for user-triggered workflows because they offer parameter validation and autocomplete.

Security, Compliance, and Privacy Considerations

Security goes beyond token handling. Consider these areas:

  • Permission hygiene: Grant the minimum permission set and use scoped OAuth2 invites.
  • Data minimization: Persist only necessary user data, and document retention policies.
  • Encryption & secrets: Store tokens and credentials in secret stores and avoid logging sensitive fields.
  • Third-party integrations: Vet external services you connect; restrict webhook targets and audit access periodically.

Integrating AI and External APIs

Combining Discord bots with AI or external data APIs can produce helpful automation, moderation aids, or analytics dashboards. When integrating, separate concerns: keep the Discord-facing layer thin and stateless where possible, and offload heavy processing to dedicated services.

For crypto- and market-focused integrations, external APIs can supply price feeds, on-chain indicators, and signals which your bot can surface to users. AI-driven research platforms such as Token Metrics can augment analysis by providing structured ratings and on-chain insights that your integration can query programmatically.

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FAQ: How do I start building a bot?

Begin by creating an application in the Discord Developer Portal, add a bot user, and generate a bot token. Choose a client library (for example discord.js, discord.py alternatives) to handle Gateway and REST interactions. Test in a private server before inviting to production servers.

FAQ: What are Gateway intents and when should I enable them?

Intents are event categories that determine which events the Gateway will send to your bot. Enable only the intents your features require. Some intents, like message content, are privileged and require justification for larger bots or those in many servers.

FAQ: How can I avoid hitting rate limits?

Respect rate-limit headers, use client libraries that implement request queues, batch operations when possible, and shard your bot appropriately. Implement exponential backoff for retries and monitor request patterns to identify hotspots.

FAQ: Are webhooks better than bots for notifications?

Webhooks are simpler for sending messages from external systems because they don't require a bot token and have a low setup cost. Bots are required for interactive features, slash commands, moderation, and actions that require user-like behavior.

FAQ: How do I secure incoming interaction requests?

Validate interaction signatures using Discord's public key. Verify timestamps to prevent replay attacks and ensure your endpoint only accepts expected request types. Keep validation code in middleware for consistency.

Disclaimer

This article is educational and technical in nature. It does not provide investment, legal, or financial advice. Implementations described here focus on software architecture, integration patterns, and security practices; adapt them to your own requirements and compliance obligations.

Research

API Explained: What 'API' Stands For & How It Works

Token Metrics Team
5
MIN

APIs power much of the software and services we use every day, but the acronym itself can seem abstract to newcomers. This guide answers the simple question "what does API stand for," explains the main types and patterns, and shows how developers, analysts, and researchers use APIs—especially in data-rich fields like crypto and AI—to access information and automate workflows.

What does API stand for and a practical definition

API stands for Application Programming Interface. In practice, an API is a set of rules and protocols that lets one software component request services or data from another. It defines how requests should be formatted, what endpoints are available, what data types are returned, and which authentication methods are required.

Think of an API as a contract between systems: the provider exposes functionality or data, and the consumer calls that functionality using an agreed syntax. This contract enables interoperability across languages, platforms, and teams without sharing internal implementation details.

Common API types and architectural styles

APIs come in several flavors depending on purpose and architecture. Understanding these helps you choose the right integration approach:

  • REST (Representational State Transfer): The most widespread style for web APIs. Uses HTTP methods (GET, POST, PUT, DELETE) and typically exchanges JSON. REST is stateless and often organized around resources.
  • GraphQL: A query language and runtime that allows clients to request precisely the data they need in a single request. Useful when clients require flexible access patterns.
  • gRPC: A high-performance RPC framework using protocol buffers. Favored for low-latency internal services.
  • WebSocket and Streaming APIs: For real-time, bidirectional data flows such as live price feeds or telemetry.
  • Library/SDK APIs: Language-specific interfaces that wrap lower-level HTTP calls into idiomatic functions.

In domains like crypto, API types often include REST endpoints for historical data, WebSocket endpoints for live market updates, and specialized endpoints for on-chain data and analytics.

How APIs are used: workflows and practical examples

APIs unlock automation and integration across many workflows. Typical examples include:

  • Data pipelines: scheduled API pulls ingested into analytics systems or data warehouses.
  • Automation: triggering events, notifications, or trades from software agents (when permitted by policy and regulation).
  • Embedding functionality: maps, payment processing, or identity services added to products without rebuilding them.
  • AI and model inputs: APIs provide training and inference data streams for models, or let models query external knowledge.

For researchers and developers in crypto and AI, APIs enable programmatic access to prices, on-chain metrics, and model outputs. Tools that combine multiple data sources through APIs can accelerate analysis while maintaining reproducibility.

Security, rate limits, and best-practice design

APIs must be designed with security and reliability in mind. Key considerations include:

  • Authentication and authorization: API keys, OAuth, and signed requests limit access and define permissions.
  • Rate limiting: Prevents abuse and ensures fair usage across clients; consumers should implement exponential backoff and caching.
  • Input validation and error handling: Clear error codes and messages make integrations robust and diagnosable.
  • Versioning: Maintain compatibility for existing users while enabling iterative improvements.

Designing or choosing APIs with clear documentation, sandbox environments, and predictable SLAs reduces integration friction and downstream maintenance effort.

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FAQ: Common questions about APIs

What does API stand for?

API stands for Application Programming Interface. It is a defined set of rules that enables software to communicate and exchange data or functionality with other software components.

How does an API differ from a library or SDK?

An API is a specification for interaction; a library or SDK is an implementation that exposes an API in a specific programming language. Libraries call APIs internally or provide convenience wrappers for API calls.

When should I use REST vs GraphQL?

Use REST for simple, resource-oriented endpoints and predictable cacheable interactions. Use GraphQL when clients require flexible, tailored queries and want to minimize round trips for composite data needs.

How do rate limits affect integrations?

Rate limits cap how many requests a client can make in a given period. Respecting limits with caching and backoff logic prevents service disruption and helps maintain reliable access.

Can APIs provide real-time data for AI models?

Yes. Streaming and WebSocket APIs can deliver low-latency data feeds that serve as inputs to real-time models, while REST endpoints supply bulk or historical datasets used for training and backtesting.

What tools help manage multiple API sources?

Integration platforms, API gateways, and orchestration tools manage authentication, rate limiting, retries, and transformations. For crypto and AI workflows, data aggregation services and programmatic APIs speed analysis.

How can I discover high-quality crypto APIs?

Evaluate documentation, uptime reports, data coverage, authentication methods, and community usage. Platforms that combine market, on-chain, and research signals are especially useful for analytical workflows.

Where can I learn more about API best practices?

Official style guides, API design books, and public documentation from major providers (Google, GitHub, Stripe) offer practical patterns for versioning, security, and documentation.

Disclaimer: This article is educational and informational only. It does not constitute financial, legal, or investment advice. Readers should perform independent research and consult appropriate professionals for their specific needs.

Research

Mastering the ChatGPT API: Practical Developer Guide

Token Metrics Team
5
MIN

ChatGPT API has become a foundational tool for building conversational agents, content generation pipelines, and AI-powered features across web and mobile apps. This guide walks through how the API works, common integration patterns, cost and performance considerations, prompt engineering strategies, and security and compliance checkpoints — all framed to help developers design reliable, production-ready systems.

Overview: What the ChatGPT API Provides

The ChatGPT API exposes a conversational, instruction-following model through RESTful endpoints. It accepts structured inputs (messages, system instructions, temperature, max tokens) and returns generated messages and usage metrics. Key capabilities include multi-turn context handling, role-based prompts (system, user, assistant), and streaming responses for lower perceived latency.

When evaluating the API for a project, consider three high-level dimensions: functional fit (can it produce the outputs you need?), operational constraints (latency, throughput, rate limits), and cost model (token usage and pricing). Structuring experiments around these dimensions produces clearer decisions than ad-hoc prototyping.

How the ChatGPT API Works: Architecture & Tokens

At a technical level, the API exchanges conversational messages composed of roles and content. The model's input size is measured in tokens, not characters; both prompts and generated outputs consume tokens. Developers must account for:

  • Input tokens: system+user messages sent with the request.
  • Output tokens: model-generated content returned in the response.
  • Context window: maximum tokens the model accepts per request, limiting historical context you can preserve.

Token-awareness is essential for cost control and designing concise prompts. Tools exist to estimate token counts for given strings; include these estimates in batching and truncation logic to prevent failed requests due to exceeding the context window.

Integration Patterns and Use Cases

Common patterns for integrating the ChatGPT API map to different functional requirements:

  1. Frontend chat widget: Short, low-latency requests per user interaction with streaming enabled for better UX.
  2. Server-side orchestration: Useful for multi-step workflows, retrieving and combining external data before calling the model.
  3. Batch generation pipelines: For large-scale content generation, precompute outputs asynchronously and store results for retrieval.
  4. Hybrid retrieval-augmented generation (RAG): Combine a knowledge store or vector DB with retrieval calls to ground responses in up-to-date data.

Select a pattern based on latency tolerance, concurrency requirements, and the need to control outputs with additional logic or verifiable sources.

Cost, Rate Limits, and Performance Considerations

Pricing for ChatGPT-style APIs typically ties to token usage and model selection. For production systems, optimize costs and performance by:

  • Choosing the right model: Use smaller models for routine tasks where quality/latency tradeoffs are acceptable.
  • Prompt engineering: Make prompts concise and directive to reduce input tokens and avoid unnecessary generation.
  • Caching and deduplication: Cache common queries and reuse cached outputs when applicable to avoid repeated cost.
  • Throttling: Implement exponential backoff and request queuing to respect rate limits and avoid cascading failures.

Measure end-to-end latency including network, model inference, and application processing. Use streaming when user-perceived latency matters; otherwise, batch requests for throughput efficiency.

Best Practices: Prompt Design, Testing, and Monitoring

Robust ChatGPT API usage blends engineering discipline with iterative evaluation:

  • Prompt templates: Maintain reusable templates with placeholders to enforce consistent style and constraints.
  • Automated tests: Create unit and integration tests that validate output shape, safety checks, and critical content invariants.
  • Safety filters and moderation: Run model outputs through moderation or rule-based filters to detect unwanted content.
  • Instrumentation: Log request/response sizes, latencies, token usage, and error rates. Aggregate metrics to detect regressions.
  • Fallback strategies: Implement graceful degradation (e.g., canned responses or reduced functionality) when API latency spikes or quota limits are reached.

Adopt iterative prompt tuning: A/B different system instructions, sampling temperatures, and max tokens while measuring relevance, correctness, and safety against representative datasets.

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FAQ: What is the ChatGPT API and when should I use it?

The ChatGPT API is a conversational model endpoint for generating text based on messages and instructions. Use it when you need flexible, context-aware text generation such as chatbots, summarization, or creative writing assistants.

FAQ: How do tokens impact cost and context?

Tokens measure both input and output size. Longer prompts and longer responses increase token counts, which raises cost and can hit the model's context window limit. Optimize prompts and truncate history when necessary.

FAQ: What are common strategies for handling rate limits?

Implement client-side throttling, request queuing, exponential backoff on 429 responses, and prioritize critical requests. Monitor usage patterns and adjust concurrency to avoid hitting provider limits.

FAQ: How do I design effective prompts?

Start with a clear system instruction to set tone and constraints, use examples for format guidance, keep user prompts concise, and test iteratively. Templates and guardrails reduce variability in outputs.

FAQ: What security and privacy practices should I follow?

Secure API keys (do not embed in client code), encrypt data in transit and at rest, anonymize sensitive user data when possible, and review provider data usage policies. Apply access controls and rotate keys periodically.

FAQ: When should I use streaming responses?

Use streaming to improve perceived responsiveness for chat-like experiences or long outputs. Streaming reduces time-to-first-token and allows progressive rendering in UIs.

Disclaimer

This article is for informational and technical guidance only. It does not constitute legal, compliance, or investment advice. Evaluate provider terms and conduct your own testing before deploying models in production.

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