Crypto Investments Reach $ 17 Billion In First Six Months Of 2021
- The year saw investments worth $ 17 billion in the
cryptographyspace already, the biggest of any year so far.
- According to an IndiaTech white paper, Indian companies received just 0.2% of the $ 5.5 billion invested globally in May.
- While foreign funds still dip their toes into Indian crypto companies, local investors remain wary due to regulatory uncertainty.
Globally, the fortunes of the crypto industry could improve. Nothing drives the growth of an industry more than investor interest, and it looks like the crypto industry is getting the best.
According to a Bloomberg report based on data from Pitchbook, venture capital funds invested $ 17 billion in the industry in the first half of this year, beating numbers recorded every year so far.
The report comes just three months after Pitchbook revealed investments worth $ 3 billion were made in
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Crypto investments are happening in India too – just on a smaller scale
As the country continues to grapple with regulation, foreign funds are reaping the first profits from Indian-founded startups in the blockchain ecosystem, while local investors remain wary.
For example, Dubai-based crypto investment fund FD7 Ventures launched a $ 250 million micro-fund in India in March, intended to invest in altcoin projects like Polkadot and Cardano.
And, in India, Polygon – an Ethereum-based blockchain company – also received a “big investment” from billionaire Mark Cuban last month.
But, companies nationwide received just 0.2% of the $ 5.5 billion invested in blockchain startups globally, according to a white paper released by think tank IndiaTech in May.
Companies like Polygon are built on public blockchain systems, like Ethereum, which will be directly affected if regulators crack down on crypto too harshly.
However, even if you consider the fact that the Indian crypto trading industry is not seen as the most relevant in the global scheme of things, the data suggests that the overall industry is simply too big to fail now.
Too big to fail?
To be clear, much of the current global growth of $ 17 billion comes from a single deal, as Bloomberg pointed out. The Blockchain Block company. One of them launched a massive $ 10 billion fundraiser led by billionaires Peter Thiel, Alan Howard and Louis Bacon. However, it’s hard to ignore the fact that the crypto industry is slowly becoming too big to fail.
In April, many pointed out that Coinbase’s listing on the NASDAQ exchange could be a turning point for the industry. The world’s largest crypto exchange saw a massive initial public offering (IPO) of over $ 100 billion on the exchange. It rose 31% about a month after that, and while it also saw declines, it sparked investor interest in crypto and blockchain companies, unlike all previous iterations.
Around the same time as Coinbase’s successful listing, large investment firm Tiger Global made a significant investment in Indian crypto exchange CoinSwitch Kuber. The company raised $ 25 billion in a Series B round led by Tiger Global.
Interest from the U.S. investment firm lifted CoinSwitch’s value to $ 500 million, placing it among the top exchanges in a country relatively new to the industry, but a hub for blockchain development in the whole world.
It’s not just about the ‘monetary value’ of cryptocurrencies
Of course, countries would like to retain their monetary sovereignty, but cryptocurrencies are not your day-to-day assets either. Ether, the token that powers the Ethereum blockchain, benefits from every new application developed using its underlying technology.
According to the decentralized application tracking platform (Dapps) State of Dapps, the Ethereum chain has registered up to 3,800 new applications per month. Decentralized apps include games, payment apps, social media, and more that are built on blockchain platforms.
You could argue that 3,800 Dapps per month is a small number in the bigger picture, but it’s exactly the sort of thing that is growing rapidly with investor interest. After all, Facebook was one of the few when it got big, but social media is undoubtedly one of the biggest industries today.
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