Dragonfly Capital Bets Big as Crypto Enters a New Financial Era

When Rob Hadick finalized his move to Dragonfly Capital in April 2022, he expected a quiet pause before starting work. A noncompete agreement with his former employer, GoldenTree, required him to step back for six months, prompting him to rent a home in the Hamptons. That calm quickly dissolved as the crypto market plunged following the collapse of Terra Luna, triggering widespread losses and panic across digital assets.

By the time Hadick officially began at Dragonfly later that year, the implosion of FTX had deepened the industry’s crisis. Despite these shocks, he remained confident in the opportunity ahead, emphasizing that Dragonfly still had substantial capital ready to be deployed. That conviction paid off, as the firm’s third fund helped elevate it into the top tier of crypto venture capital, putting it in competition with major players such as Andreessen Horowitz and Paradigm. Strategic early investments in firms including Polymarket, Rain, and Ethena reinforced that ascent.

Now, as crypto faces another downturn, Dragonfly has unveiled a fourth fund totaling $650 million, signaling confidence amid broader market contraction.

Four Leaders, One Strategy

Dragonfly’s resilience has been shaped by its leadership structure, anchored by four complementary figures. Hadick brought traditional finance expertise, while Haseeb Qureshi emerged as the firm’s public ambassador. Tom Schmidt added deep decentralized finance knowledge, and founder Bo Feng provided longstanding ties to Asian technology and capital markets. Together, they guided the firm through regulatory scrutiny from the Department of Justice, a strategic retreat from China amid regulatory pressure, and internal restructuring following a founder split.

Qureshi’s path to Dragonfly began far from venture capital. After early success as a professional online poker player, he transitioned into software engineering in Silicon Valley before leaving a lucrative role at Airbnb to pursue crypto ventures. His experience eventually led him to MetaStable and later to Dragonfly in 2019, during another prolonged crypto downturn. Over time, he became widely recognized through his role on the Chopping Block and his analytical commentary on industry trends.

From Global Roots to Strategic Focus

Dragonfly was originally formed through a partnership between Alex Pack and Feng, leveraging Feng’s influence in China through investments such as OKEx, later rebranded as OKX. Early backing from Asian technology leaders, including Sequoia China’s Neil Shen, helped establish the firm’s first fund. Dragonfly built its reputation with investments in platforms like Bybit and Matrixport.

Following Pack’s departure to form Hack VC, Dragonfly consolidated its vision. Regulatory crackdowns in China prompted the firm to relocate its Asia operations to Singapore, while gradually shifting focus toward the United States.

Embracing Finance Over Ideology

By the early 2020s, Dragonfly’s investments reflected a broader industry pivot. Instead of backing ambitious Web3 social or gaming platforms, the firm concentrated on financial infrastructure. It supported projects such as Avalanche and Amber Group, and even faced controversy over an investment in Tornado Cash.

Hadick’s arrival reinforced this finance-first approach. Dragonfly backed Ethena during the 2023 bear market, leading its seed round despite widespread skepticism shaped by earlier stablecoin failures. The project later attracted major institutional investors, including Franklin Templeton and Fidelity’s venture arm, and grew into one of the largest stablecoin platforms by market value.

The firm also returned to Polymarket, backing its Series B after initially passing on the seed round, which had gone to Polychain. These moves aligned with a broader reassessment across the industry, echoed by voices such as Chris Dixon of a16z, who has described the current phase as the financial era of blockchains.

Shaping the Next Chapter

As blockchain technology increasingly converges with traditional finance, Dragonfly positions itself as a specialist rather than a purist. While some question whether this shift departs from the original ideals of Bitcoin and Ethereum, Dragonfly’s leadership views it as a necessary evolution. With fresh capital and a clear strategy, the firm aims to help define how digital assets integrate into the global financial system during the next cycle.

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