Cryptoverse: What crisis? Venture capitalists bet big on crypto
It's not all doom and gloom.Even as the crypto sector shivers in the bleak winter, venture capitalists are pouring money into digital currency and blockchain startups at a pace that's set to outstrip last year's record.In the first half of the year, VCs bet US$17.5 billion on such firms, according to data from PitchBook.
That puts investment on course to top the record US$26.9 billion raised last year, a warmer and happier time for bitcoin and co."The current market conditions - I don't think they faze investors," said Roderik van der Graf, founder of Hong Kong investment firm Lemniscap, which focuses on crypto and blockchain. "The capital available is massive."VC funds offer financing to young companies they believe have strong growth prospects.
The data suggests a solid faith in the future of crypto and blockchain tech, despite a bruising six months for the industry.A double whammy of macroeconomic headwinds and blow-ups at major projects this year have seen bitcoin plummet about 65 per cent from its November record of US$69,000, with the overall value of the crypto market tumbling by two-thirds to US$1 trillion.Companies have shuddered as prices fall, with major US exchange Coinbase Global and NFT platform OpenSea among those to lay off hundreds of workers.Yet some VCs are shrugging off the gloom, with many deploying substantial war chests as their faith in the underlying tech behind crypto coins remains strong.Though not all investors are so bullish in the face of the crypto carnage, not by any means.David Siemer, CEO of California crypto management firm Wave Financial, said there were signs of a pullback from the sky-high valuations of crypto firms last year."This will get a lot worse - we're a couple of months into
