Why Are Top Universities Cutting Back on Academic Funding? Capital Flows in the Wake of the Crypto Boom

Recently, an interesting phenomenon has emerged: renowned global institutions are facing budget cuts in their academic disciplines. What is the underlying logic? Some analyses suggest it is closely related to the rise of the cryptocurrency ecosystem.

In simple terms, over the past decade, the flow of talent in traditional finance and technology has shifted. Outstanding alumni and researchers from top universities are increasingly venturing into Web3 startups. Alongside this, venture capital is heavily flowing into blockchain and digital asset projects. What does this lead to? Traditional disciplines—especially humanities and basic research—are facing funding shortages.

From another perspective, this also reflects market choices. When the crypto ecosystem offers higher salaries, greater imaginative space, and innovation opportunities, talent naturally gravitates in that direction. If universities want to remain competitive, they must either follow and develop Web3 research or watch resources flow away.

Some say this is a bubble; others believe it marks the arrival of a new era. But regardless, the influence of cryptocurrencies on global resource allocation has already penetrated traditional educational institutions. This transformation is still ongoing.