Funding
Crypto Biz: Crypto VC is back with a vengeance
You’ve no doubt heard the expression, follow the money. Well, if you do that in the venture capital world, you’ll be led directly to crypto, blockchain and digital assets. After a modest summertime lull in venture financing, this week saw the announcement of two massive raises worth a combined $500 million. That’s $500 million VCs are allocating to crypto-focused startups at the intersection of Web3, blockchain infrastructure and decentralized communities. If you think funding deals have stopped amid the bear market, think again. I mentioned “summertime lull” at the outset, but that doesn’t mean funding has stopped. There are so many deals, in fact, that I’ve had to start a separate series called VC Roundup just to keep track. Data from Cointelegraph Research also shows that Q2 fundi...
Crypto markets bounced and sentiment improved, but retail has yet to FOMO
An ascending triangle formation has driven the total crypto market capitalization toward the $1.2 trillion level. The issue with this seven-week-long setup is the diminishing volatility, which could last until late August. From there, the pattern can break either way, but Tether and futures markets data show bulls lacking enough conviction to catalyze an upside break. Total crypto market cap, USD billion. Source: TradingView Investors cautiously await further macroeconomic data on the state of the economy as the United States Federal Reserve (FED) raises interest rates and places its asset purchase program on hold. On Aug. 12, the United Kingdom posted a gross domestic product (GDP) contraction of 0.1% year-over-year. Meanwhile, inflation in the U.K. reached 9.4% in July, the highest figur...
VC Roundup: Lightning Network payment rail, DeFi trading platform and blockchain security firm raise millions
Even with the onset of crypto winter, 2022 has been a watershed year for venture capital funding. Crypto and blockchain companies collectively raised $30.3 billion in venture capital in the first half of 2022, exceeding all of last year’s totals. While the number of deals has declined in recent months, startups at the intersection of blockchain payments, decentralized finance (DeFi) and cybersecurity are still attracting sizable interest from the VC community. The latest edition of VC Roundup highlights some of the most intriguing funding deals of the past month. Related: The risks and benefits of VCs for crypto communities ZEBEDEE closes $35M Series B ZEBEDEE, a Bitcoin (BTC)-powered payment processor for the gaming industry, has raised $35 million from several investors i...
2 metrics signal the $1.1T crypto market cap resistance will hold
Cryptocurrencies have failed to break the $1.1 trillion market capitalization resistance, which has been holding strong for the past 54 days. The two leading coins held back the market as Bitcoin (BTC) lost 2.5% and Ether (ETH) retraced 1% over the past seven days, but a handful of altcoins presented a robust rally. Crypto markets’ aggregate capitalization declined 1% to $1.07 trillion between July 29 and Aug. 5. The market was negatively impacted by reports on Aug. 4 that the U.S. Securities and Exchange Commission (SEC) is investigating every U.S. crypto exchange after the regulator charged a former Coinbase employee with insider trading. Total crypto market cap, USD billions. Source: TradingView While the two leading cryptoassets were unable to print weekly gains, traders’ appetite...
Fed policy and crumbling market sentiment could send the total crypto market cap back under $1T
The total crypto market capitalization broke above $1 trillion on July 18 after an agonizing thirty-five-day stint below the key psychological level. Over the next seven days, Bitcoin (BTC) traded flat near $22,400 and Ether (ETH) faced a 0.5% correction to $1,560. Total crypto market cap, USD billion. Source: TradingView The total crypto capitalization closed July 24 at $1.03 trillion, a modest 0.5% negative seven-day movement. The apparent stability is biased toward the flat performance of BTC and Ether and the $150 billion value of stablecoins. The broader data hides the fact that seven out of the top-80 coins dropped 9% or more in the period. Even though the chart shows support at the $1 trillion level, it will take some time until investors regain confidence to invest in cryptocurrenc...
NFT sales will fund the restoration of physical monuments in Ukraine
The Ukrainian government will be using the proceeds of sales from an online nonfungible token, or NFT, museum to restore artwork in the real world. According to a Friday announcement and information shared with Cointelegraph, Ukraine’s Ministry of Culture and Information Policy said the government’s Meta History Museum of War platform, aimed at preserving the timeline of major events in Russia’s war with Ukraine, raised 803.28 Ether (ETH) — roughly $1.3 million at the time — through NFT sales. The ministry said proceeds from the sales will go toward “the restoration of Ukrainian cultural institutions,” many of which have been damaged or destroyed by missile attacks from Russia. “During the six months of the war in Ukraine, the Russians destroyed hundreds of our museum...
Christie’s launches venture fund aimed at Web3 and blockchain investments
Christie’s, the auction house known for its sales of art and luxury items, has launched an investment fund to support emerging companies with technology enabling “seamless consumption of art.” In a Monday announcement, the auction company said the fund, Christie’s Ventures, will financially support firms in Web3, “art-related financial products and solutions,” and technology related to art and luxury goods. According to Christie’s, its first investment will be in LayerZero Labs, a company developing solutions for enabling omnichain decentralized applications, allowing a more seamless transfer of assets between blockchains. “We will focus on products and services, which can solve real business challenges, improve client experiences and expand growth opportunities, both across the art ...
Crypto Biz: 3AC’s founders are nowhere to be found
In the world of crypto, there’s no such thing as “too big to fail.” Three Arrows Capital, once the most recognizable hedge fund in the industry, has essentially gone belly-up after its founders believed their own hype and decided to go full-degen mode during the worst macro climate of a generation. Since the proverbial shit hit the fan last month, founders Kyle Davies and Su Zhu have kept a very low profile. So low, in fact, that their whereabouts remain a mystery, according to court documents. This week’s Crypto Biz chronicles the latest developments surrounding Three Arrows Capital and explores Grayscale’s legal proceedings against the United States Securities and Exchange Commission (SEC). Liquidators can subpoena 3AC founders despite ‘tricky issues’ with crypto assets We may not ...
Multicoin Capital raises $430M for new crypto startup fund
Prominent crypto investor Multicoin Capital has launched a new venture fund valued at $430 million, further demonstrating venture capital’s growing interest in the blockchain economy amid the bear market. Multicoin’s Venture Fund III will invest between $500,000 and $25 million in early-stage companies across various crypto- and blockchain-focused industries, the company announced Tuesday. It’s also willing to invest values of up to $100 million or greater for later-stage projects with an established brand and market presence. Related: VC Roundup: ‘Web5,’ Metaverse sports and Bitcoin monetization startups generate buzz Venture Fund III will place greater emphasis on crypto projects that have demonstrated “proof of physical work,” or protocols that have created economic incentives for...
Unizen ‘CeDeFi’ smart exchange secures $200M investment from GEM
Cryptocurrency exchange Unizen has scored a $200 million investment from private equity group Global Emerging Markets (GEM) which it will use to expand its business and its ecosystem. Rather than receiving the $200 million in funding all at once, Unizen noted on June 27 that the investment will come in the form of a “capital commitment’, with part of the funding released upfront and the rest will be provided later based on achieved milestones. Unizen did not disclose what particular criteria it had to achieve to receive the funding. Unizen calls itself a “CeDeFi” exchange mixing features of both centralized exchanges (CEXs) and decentralized exchanges (DEXs), it runs on the BNB Chain, formerly called the Binance Smart Chain. It aims to attract both retail and institutional investors by fin...
Crypto brokerage FalconX raises $150M at $8B valuation
Despite the ongoing bearish trend in cryptocurrency markets, venture capital firms continue pouring capital into major industry players like FalconX. FalconX, the institutional-level digital asset platform and crypto brokerage, has raised $150 million in fresh funding as part of its Series D financing round. Completed in early June, the funding round values FalconX at $8 billion, more than doubling from its previous Series C-round valuation of $3.75 billion in August 2021, the firm announced to Cointelegraph on Wednesday. The firm has now raised more than $430 million in total. FalconX’s latest investment round was led by the Singaporean sovereign wealth fund GIC and Facebook’s Eduardo Saverin-backed B Capital Group. Other investors included prominent industry investors and VC firms like T...
Crypto exchange BlockFi secures $250M credit from FTX amid bear market
BlockFi, a cryptocurrency exchange and digital wallet service provider, has secured a $250 million credit from leading crypto platform FTX. Today @BlockFi signed a term sheet with @FTX_Official to secure a $250M revolving credit facility providing us with access to capital that further bolsters our balance sheet and platform strength. — Zac Prince (@BlockFiZac) June 21, 2022 BlockFi has signed a term sheet with FTX crypto exchange to secure a $250 million revolving credit facility. A revolving credit facility is a type of credit that enables you to withdraw money, use it to fund your business, repay it and then withdraw it again when you need it. Zac Prince, the CEO of BlockFi, confirmed the news in a Twitter thread, claiming the new flow of capital would bolster the firm’s balance sheet a...
