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Crypto startups get $100 billion from investors in 10 years
In the years since the industry was founded, cryptocurrency startups have made around $100 billion.
That’s according to a Saturday (June 15) report from Bloomberg News, which cites data from two sources: DeFiLlama which sets the total of the crypto sector fundraiser at $101 billion since 2014, e Block researchwhich has recorded investments of 95 billion dollars since 2017.
The report notes that funding from venture capital deals and token sales has been a major driver of the cryptocurrency industry’s growth, but the billions invested in startups have so far offered mixed results for investors.
Paolo Veradittakitmanaging partner at Panther Capitalthe $4.7 billion cryptocurrency investment firm, told Bloomberg that outcomes such as acquisitions and public listings have “definitely taken longer than I think you typically expect from traditional VC.”
He added it Coinbase’s 86 billion dollar quotation in 2021 – during the latest cryptocurrency bull market – represents a notable exception, although releases overall have been few and far between.
According to the report, cryptocurrency investments rose to $2.5 billion in the first quarter of 2024, following a recent low of $1.9 billion in the fourth quarter of 2023.
These investments occurred in a broader context return to the crypto space, with Bitcoin hitting a record high of nearly $74,000 in March. While this rally has stalled somewhat, Bloomberg’s report states that some analysts expect renewed momentum and a wave of cryptocurrency-related initial public offerings.
Meanwhile, PYMNTS last week examined how stablecoins are “at the center of the cryptocurrency industry’s focus for the foreseeable future.” return to form.”
The reason? These digital assets – designed to maintain a stable value by being pegged to a reserve asset such as a fiat currency such as the dollar – “aim to provide the advantages of cryptocurrenciessuch as security, privacy and fast transaction times, doing their best to minimize price volatility.”
And with the symbol of the European Union Cryptocurrency Markets Act (MiCA) will come into effect soon, and following that framework is a priority for stablecoin issuers, custodians, trading exchanges, cryptocurrency consultancies and cryptocurrency portfolio managers.
“By establishing clear guidelines for the operation of stablecoins, MiCA seeks to mitigate risks associated with these digital assets, such as volatility and potential market manipulation,” PYMNTS wrote.
“At the same time, the implementation of MiCA occurs in a context where, to date, most government control over stablecoins and the cryptocurrency industry has been relatively theoretical.”
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