Venture Capital Seems Persuaded to Invest in the Cryptocurrency and Blockchain Industry
During the last year, cryptocurrencies have experienced a very hard year in terms of price action. Indeed, most of the digital assets fell more than 90% since their all-time high. Most of the tokens released through Initial Coin Offerings (ICOs) have almost disappeared or been abandoned.
However, the blockchain-led operations secure around $1.6 billion for projects that garnered attention by their backers. According to a recent report released by Diar, the industry secured $3.9 billion up until October 2018.
Investments In Blockchain Technology Continues Growing
Cryptocurrency exchanges such as Coinbase, Circle, and Kraken have raised more than $500 million after the crypto market started to fall at the beginning of January 2018. For example, last month, Kraken was able to secure $100 million. The company has also purchased Crypto Facilities, a UK-based derivatives exchange.
There are other firms that have also raised $230 million for their platforms, including Bakkt, ErisX and Seed CX.
There are also exchanges that sell coins that have few use cases, thus this is not the reason why millions have been invested in the market. As per the report, the spend on blockchain-based financial tools and the potential future of institutional grade offerings of tokenized securities, derivative trading and more, is attracting investors to the market.
The report reads as follows:
“The startling fact isn’t only how much money has been raised, but the valuations that now run into the Billions of dollars for businesses for the most part, far from commercial grade readiness, notwithstanding the murky regulations that remain to cloud the whole space.”
2019 has already been very positive for companies. They have raised more than $200 million in funds. As Diar shows, 10 companies in the space (Coinbase, Bakkt, Dfinity, Circle, Seba Crypto, Kraken, Ledger, Paxos, Figure and Oasis Labs) concentrated 75% of the investments close to $1.21 billion.