VC Money flows heavily into crypto as companies receive more funding in the last quarter than they did in the entire 2020 as we can see in our latest crypto news today.
Without a doubt, the mainstream resurgence of crypto spurred on some new movements in the industry and ranged from Defi to NFT. The industries within the broader crypto scene resulted in thousands of new startups and venture capitalists that are pouring money like never before. According to a report from CB Insights, the venture capital funds are investing $2.6 billion in over 129 crypto-based startups in the first quarter of the year. This accounts for more than the entire 2020 which saw $2.3 billion in investments with more than 341 deals. The increase was fueled by BTC surging to new highs and brought more corporate buyers and retail investors as well.
— unfolded. (@cryptounfolded) April 2, 2021
With the investors looking to take advantage of the growing demand for BTC investment solutions, the financial services company NYDIG raised $100 million via Soros and Morgan Stanley. Also as we saw, NBA Top Shot creator Dapper Labs and OpenSEA were able to raise about $305 million and $35 million respectively.
The VC money is flowing in as cryptos have a blazing start of the year but we can still not say for sure whether the growth can be sustained. Things started settling down in March and the institutional demand dropped after the market volatility as per the reports from CoinShares. The digital asset investment company saw inflow into BTC products that dropped 60% in March. The NFT space was winding down since the mania back in February so according to NonFungible, the daily value of NFTs sold across marketplaces dropped by 85% between March 25 and April 1st.
As for Dapper Labs and its Top Shot, the total value of NFTs in circulation dropped by50% as a secondary market demand weakness. These signs will spook some investors away which could lead to a slowdown in investments across the crypto space. The basketball-focused collectible card trading game by Dapper Labs has hit over $230 million in sales as the reports by CNBC outlined. For the uninitiated, the trading cards are a type of non-fungible token or NFTs and they are a cryptographic representation of ownership on a blockchain and can also be used to provide one’s ownership of the rights to tangible and non-tangible objects like trading cards, real estate, and virtual land.
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