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Crypto Start-Up Funding Reaches $100 Billion

Published 2024-06-17, 06:43 a/m
© Reuters.  Crypto Start-Up Funding Reaches $100 Billion
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yolowire.com - Cryptocurrency start-up companies have now attracted $100 billion U.S. of venture capitalist funding amid the rally in Bitcoin (CRYPTO: BTC) and other digital tokens.

Data collected by DeFiLlama shows that the crypto sector’s fundraising has reached $101 billion U.S. in the decade since 2014.

The fundraising has taken the form of venture capital deals and token sales, and it has helped propel growth of the entire cryptocurrency sector.

However, analysts point out that crypto start-ups have had mixed results for investors, with some thriving while others have imploded.

The biggest implosion was the $32 billion U.S. bankruptcy of Sam Bankman-Fried’s FTX crypto exchange, followed by crypto lender BlockFi’s failure.

Owing to the start-up failures, some of the biggest crypto venture investors, such as Tiger Global Management and Temasek Holdings, have exited the sector.

Temasek said last year that it has no plans to invest in anymore crypto ventures after writing down a $275 million U.S. investment in FTX to zero.

While the total invested in crypto firms has surpassed $100 billion U.S., fundraising by crypto start-up companies has dropped off sharply from the levels seen in 2021.

Crypto venture investments rose to $2.50 billion U.S. in this year’s first quarter, up from a low of $1.90 billion U.S. in the fourth quarter of 2023, according to data from PitchBook.

In March of this year, Bitcoin’s price reached an all-time high of just under $74,000 U.S. The price has since fallen to trade at $65,500 U.S.

This content was originally published on yolowire.com

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