Blockchain framework startup Alchemy has come up with some heavy hitters in raising seed money so far this year. One of their most prestigious ‘angels’ is Stanford University, which recently agreed to look into the possibility of investing in cryptocurrency funds for their California Portfolio.
Traditionally university investment instruments for staff retirement and infrastructure improvement have tended to be very conservative, relying heavily on so-called ‘blue chip’ stocks and bonds. The problem with those investments, however, in today’s volatile market, is that they no longer give out with the long range, if modest, payouts that were as dependable as clockwork. So Stanford, among other forward-looking schools, is beginning to tentatively invest in things like blockchain startups. It’s not a landslide yet by any means, but the door is open a crack and unless cryptocurrency and its many entrepreneurs go completely haywire, the chances are that as more cryptocurrency startups appear the more money investors like Stanford will be willing to risk on them.
There is some controversy surrounding Stanford’s investment in Alchemy, since several prominent Stanford alumni, including Joseph Lau and Nikil Viswanathan, are major stockholders in Alchemy. Critics are wondering if there might be a conflict of interest. But Stanford’s Board of Directors has so far remained mum on the subject.