Crypto.com’s venture capital arm is expressing skepticism about the lofty valuations in the sector, as CEO Kris Marszalek highlighted in an interview with Bloomberg News on April 17.

Marszalek noted the surge in billion-dollar funding rounds for early-stage crypto startups amid the ongoing rally in the crypto sector. He compared this trend to the investment frenzy during the COVID-era bull run in tokens, emphasizing the need for a balanced approach.

“We seek a favorable financial return,” Marszalek stated. “Currently, the valuations proposed by project teams are exceedingly generous.”

Crypto.com Capital has reportedly reduced its investment activity since 2022, a year that commenced with a $500 million allocation for crypto startup investments. Dealroom analysts documented only four Crypto.com investments in the past year, contrasting with 35 investments in the preceding two years.

Despite the escalating crypto venture landscape, Marszalek acknowledged the need to exercise prudence. The unit has engaged in approximately 70 investments, amounting to a significant sum, although specific figures were not disclosed.

In a separate interview, Marszalek disclosed Crypto.com’s plans to expand its workforce by hiring 1,400 employees. This initiative follows a previous announcement about reducing staff by 20%. The company has already recruited 700 new employees since November, with intentions to hire an additional 500 in customer service roles and 200 in corporate positions.

Notably, other prominent players in the crypto industry, including Coinbase Global, Kraken, Binance, and Gemini, have also been bolstering their workforce recently.

On a different note, Ripple CEO Brad Garlinghouse anticipates the cryptocurrency market capitalization exceeding $5 trillion by 2024. Garlinghouse foresees a doubling of the crypto market value this year, driven by factors such as the anticipated approval of the first U.S. spot bitcoin exchange-traded funds (ETFs) and the upcoming bitcoin “halving.”

Garlinghouse expressed optimism about the industry’s prospects, attributing the growth to the influx of institutional funds and the dynamics of supply and demand in the market.