Skip to main content

After record growth: Venture capital investments fall 38 percent in May



 The short-term drop in investment is due to the recent market correction, which has seen Bitcoin ( BTC ) and other major cryptocurrencies plunge as much as 50 percent or more.


According to the latest data from Dove Metrics, venture capital investments in cryptocurrencies fell 38.2 percent overall last month, from $6.8 billion in April to $4.7 billion in May. Compared to the previous year, however, they have increased by 97.8 percent.


The investment distribution data shows that infrastructure companies accounted for 21 percent and DeFi startups for 14 percent. CeFi and NFT projects each accounted for 13 percent. 


This shows that venture capital funds prefer to play it safe and invest in core technologies that actually bring innovation to the crypto space. They currently prefer to stay away from riskier projects.


Projects like Xendit, a Southeast Asia-focused payments solution, and Lithosphere, a next-generation platform for cross-chain decentralized applications, have collectively raised $700 million.


In May, Sam Bankman-Fried, the founder of the popular crypto exchange FTX, invested the largest amount at $650 million . This investment went to the popular trading platform Robinhood. At the same time, Bankman-Fried acquired 7.6 percent of the company's shares.


Renowned analytics firm Chainalysis and well-known crypto exchange KuCoin have also each raised over $150 million.


The data shows that the United States leads the way when it comes to venture capital investments. Then comes Singapore and Hong Kong. This statistic reflects the global trend for venture capital .


One of the largest venture capitalists is hedge fund Andressen Horowitz, which raised $4.5 billion for Web3 projects, bringing the total invested in crypto to $7.6 billion. The company is known for having backed several successful projects such as Coinbase or Solana ( SOL ).


Another big name is NGC Ventures from Singapore. This recently raised 100 million US dollars and has its focus on "promising projects" in the Web3 area. For example, the company has invested in Algorand ( ALGO ) and Oasis (ROSE).


Despite the current crypto bear market, venture capital investors are more active than ever . JPMorgan said the recent collapse of the Terra ecosystem has had no impact on venture capital. This shows that there is fundamental confidence in the long-term development of crypto and blockchain technology. Innovative technologies such as Web3 and DeFi are particularly in the foreground.

My Top Picks
Honeygain - Passive earner that pays in BTC or PayPal
MandalaExchange -The Best no KYC crypto Exchange! 
Clash Of Streamers - Earn Crypto while Playing all for Free! - Play smart! 
Pipeflare - Faucet that pays in ZCash and Matic, Games pay in DAI
Womplay - Mobile dApp gaming platform that rewards in EOS and Bitcoin
Cointiply - The #1 Crypto Earning Site
Torum - Join the latest Social Network and earn TRM for Free! 
LiteCoinPay - The #1 FaucetPay earner for Litecoin 
LBRY/Odysee - YouTube Alternative that lets you earn Money by viewing videos!
FaucetPay - The #1 Microwallet Platform
FREEBTC - The #1 FaucetPay earner for Satoshi's
FaucetCrypto - An earning/faucet site that pays out instantly
FireFaucet - An earning site that pays better for some than Cointiply
DogeFaucet - Dogecoin Faucet
xFaucet - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BCH, BNB, ZEC, FEY - Claim every 5 minutes
Konstantinova - BTC, ETH, LTC, Doge, Dash, Tron, DGB, BNB, ZEC, USDT, FEY, 25 Claims Daily

Comments

Post a Comment

Popular posts from this blog

BlackRock launches crypto ETF, certifies massive growth potential for crypto market

  Influential asset manager BlackRock has launched a blockchain index fund (ETF) that offers investors a way to invest in the crypto industry without having to invest directly in related cryptocurrencies. Accordingly, the world's largest asset manager, which currently has assets worth almost 10 trillion. US dollars managed, the so-called Blockchain and Tech ETF (IBLC) was launched this week. The $4.7 million ETF does not invest directly in cryptocurrencies or crypto investment products, but instead tracks various companies within the crypto industry. The ETF is made up of 41 different securities, of which the American crypto exchange Coinbase accounts for the largest share at 11.45%. They are followed by the Bitcoin ( BTC ) mining companies Marathon Digital Holdings (11.19%) and Riot Blockchain (10.41%). To still leave room for future investments in the crypto market, the ETF has a 9.15% cash component in US dollars. In addition to the launch of the new ETF, BlackRock has also publ...
Post a Comment
Read more

The 5 largest platforms for non-fungible token (NFT) collectibles

  Since the beginning of 2021, non-fungible tokens (NFT) have had no holding back and the sector is setting new records almost every day.  More and more artists, stars and brands are realizing the potential - NFT are well on their way to catapulting the crypto space into the mainstream.  But which collectibles are currently the most popular? What are NFT? NFT are unique tokens that cannot be exchanged one-for-one for an equivalent token.  Any asset that is tokenizable can be an NFT.  This includes, for example, (digital) works of art, trading cards, game items and crypto domains.  Theoretically, however, real estate or securities can also be mapped as NFT. NFTs can be used to transparently map ownership structures on a public blockchain.  This allows them to store value just like real objects, even if additional copies are easy to make.  For example, the original picture of the Mona Lisa is significantly more valuable than a photo, as everyone kno...
11 comments
Read more

CARDALONIA: THE CARDANO METAVERSE OPENS THE GATES!

  Have you ever been to Cardalonia? With these words, the Cardano Metaverse called Cardalonia starts the gates. In this 3D world, developers and users can interact with each other. First of all, users have to create an individual character with which they can move online. After that you can enter one of the worlds built by developers with this character. You can also purchase your own land in the Cardano Metaverse via the marketplaces in Cardalonia . This is secured by Cardano's blockchain technology and therefore offers a relatively secure transfer of ownership. Since these are only digital plots of land, it is not yet entirely clear when the plots of land are purchased whether they can also be sold again in the future. A possible profit cannot be estimated at the moment. In Cardalonia, the cryptocurrency Lonia is used. The maximum amount of tokens in circulation is 100,000,000. The team consists of Alice Sand (Co-Founder), Vasil Air (CTO) and Dustan Water (Fullstack Developer). T...
Post a Comment
Read more