Tom Schmidt, a general partner at Dragonfly Capital, publicly called crypto trading platform Nova Markets 'huge scammers' in a June 4 post on social media. The comment came as a quote-tweet of Nova Markets' own fundraise announcement, directly linking the accusation to the company's capital-raising efforts.
Schmidt offered no additional context. The single phrase 'huge scammers' was the entirety of his response to Nova Markets' post. The brevity left observers to guess what specific actions or claims prompted the remark. Because of Schmidt's position at Dragonfly Capital, a venture firm heavily involved in crypto, the tweet carried weight.
Nova Markets' Fundraise
Nova Markets had announced the fundraise on June 4, seeking to draw investor interest for its platform. The company's post framed the raise as a step toward growth. Schmidt's quote-tweet turned that positive message into a stark warning for anyone considering backing the startup.
The timing suggests the accusation was triggered by the content of the announcement itself, though neither party has detailed what exactly Schmidt found objectionable. Dragonfly Capital has not released a statement beyond Schmidt's post. Nova Markets has not publicly responded.
A Rare Public Condemnation
Venture capitalists typically avoid such direct public attacks on companies they don't back. Schmidt's willingness to use the word 'scammers' publicly signals a strong stance. It also raises questions about whether Schmidt or Dragonfly Capital has private information that led to the accusation, or if the remark was based on publicly available details about Nova Markets' operations.
The crypto industry has seen its share of fraud cases, but allegations of this sort from a credible venture partner are notable. Schmidt has not elaborated, and Dragonfly Capital has not commented further.
Impact on Nova Markets
The accusation could make it harder for Nova Markets to close its fundraising round. Investors may demand more transparency before committing funds. The company's reputation now carries the stain of a public accusation from a well-known figure in the crypto venture world. For now, the fundraise announcement remains online, and Nova Markets' social media accounts have not addressed the dispute.
Whether Nova Markets chooses to defend itself or proceed in silence will likely determine how the story evolves. Schmidt has not posted any follow-up. The only public record of the conflict is the thread that started with one company's hope for new capital and ended with a venture partner's blunt dismissal.
