Framework Ventures sees AI transacting onchain in the future

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Framework Ventures sees potential for more AI tokens as startups “aren’t dreaming about going public”

There’s a lot of talk about crypto and AI — both are hot sectors investors are eyeing, as many see potential in both, independently and together.

For Framework Ventures, a VC firm that launched five-years-ago, there’s a lot of opportunities emerging for crypto x AI technology and within the digital asset market, its co-founders Vance Spencer and Michael Anderson said on Talking Tokens podcast.

(Listen to the episode on Spotify, Apple Podcasts and YouTube.)

“Anywhere outside the US and Europe, people are going to monetize their AI project or startup, no matter how big it gets, through a token,” Spencer said. “These people aren’t dreaming about going public on the New York Stock Exchange, it’s not a thing.”

People should be thinking about AI through the lens of crypto, Spencer added. “That’s how it’s going to be publicly available and publicly tradable. The biggest success stories internationally will be tokenized in our view.”

Aside from token implementations, the firm also sees a number of AI-centric teams adding crypto and blockchain technology to differentiate their startups.

“I think there are ways to leverage blockchains to serve AI needs,” Anderson said. “Primarily that would be the facilitation of money, as [Spencer] said.”

For example, AI agents won’t be able to start a Wells Fargo account, Anderson added. “They’re going to use blockchains to transact.”

Additionally, if one needs to be able to prove data provenance, a marketplace that collects data — for training or inferences — there needs to be a mechanism for that and blockchains are built for that, Anderson said.

On the flip side, there are ways that blockchain-based enablement of model proliferations can exist where users don’t know the application is blockchain powered, but people transact onchain.

But it’s still early days and “you need to squint to see the future,” Spencer quipped. “Generally we take the view in the long long term, AI is going to transact onchain.”

That’s why Framework is doing a number of seed stage investments into AI and crypto projects to dip into the space in a less risky way.

In mid-July, Framework co-led a $9 million seed round in Mira, a decentralized infra platform focused on expanding AI access. “We’re not taking swings at like a $95 billion OpenAI secondary,” Spencer said.”

At it stands, there’s not many scaled AI examples in blockchains, Anderson noted. “So we don’t know who the end consumer is initially or later on or next down the road. I think as we start to figure that out, the disintermediation between what is blockchain [based] and what is not will come in.”

Check out the next section for more details and the full episode.

The latest Talking Tokens podcast 🎙️

For this week’s Thursday episode, I sat down with Vance Spencer and Michael Anderson, co-founders of Framework Ventures.

We discuss how the crypto VC landscape has changed, what deals they’re most proud of, the crypto and AI sector, new blockchains this cycle and how the spot ETH ETF can impact the broader ecosystem.

Talking Tokens episodes are released on Spotify and Apple Podcasts at 6AM EST or YouTube at 10AM EST every Tuesday and Thursday. Listen in!

Make sure to subscribe to keep up with the latest episodes. Feel free to leave a review and tell us your thoughts.

Monitoring blockchains

Looking at some of the biggest developments onchain.

• Pump.fun, a Solana-based platform for launching and trading memecoins, was the protocol with the highest 24-hour revenue at $2.3M on Wednesday

• California DMV is launching its own chain on Avalanche and has already digitized 42M car titles onchain

• Terra blockchain paused operations on Wednesday after its $4M exploit

Taking on the tokens 

The total crypto market cap decreased 3% in the past 24-hours to $2.31 trillion. It is unchanged over a 7-day period.

As for the largest cryptocurrencies by market cap…

These metrics were taken prior to publication on Thursday morning EST.

Other numbers we’re eyeing…

• $5.2 billion — that’s the amount of profit Tether, the team behind USDT, has generated since the beginning of 2024

Money and people moves

Latest updates on crypto startups that secured funding and industry players who are starting something new.

1. Former CoinDesk reporter Cam Thompson joins CoinFund as content manager

2. Google and Coinbase vets raise $5 million to build Icebreaker, blockchain’s answer to LinkedIn (Fortune)

3. Crypto startups set for $12bn in VC funds this year as Trump seen spurring trend (DL News)

4. Onchain competition startup JokeRace raised $3 million to build contests for communities

5. A16z Crypto leads $9 million Series A round for DePIN project Daylight (The Block)

Talking points for the road 

Here’s some headlines and topics that you can talk about at your next dinner party, crypto event or on a first date to look smart (results may vary.) 

1. What to expect when Coinbase reports Q2 results (Blockworks)

2. Russia approves law allowing use of crypto for global payments as it faces ongoing sanctions (CNBC)

3. How memestock mania forced CEO Vlad Tenev to reinvent Robinhood—and himself (Fortune)

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Please note that this content is for informational and entertainment purposes only. Any views shared should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research. We may have a direct or indirect financial interest in content mentioned in this newsletter.