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Venture capitalists made investments worth $14.2 billion towards cryptocurrencies: Report

According to Cointelegraph, going by a recently shared KPMG report, majority of investments in H1 2022 arrived from Trade Republic, Fireblocks, FTX, and ConsenSys

Venture capitalists made investments worth $14.2 billion towards cryptocurrencies: Report
Anton Ruddenklau, global leader of financial technology, KPMG, highlighted that investment figures for first half of 2022 were double of all years before 2021

Venture capital (VC) firms have contributed $14.2 billion into cryptocurrency across 725 deals in the first half of 2022, but accounting firm KPMG has predicted that investments will remain slow for the rest of the year, as reported by Cointelegraph.

According to Cointelegraph, going by a recently shared KPMG report, majority of investments in H1 2022 arrived from German-based cryptocurrency trading platform Trade Republic ($1.1 billion), digital asset custody platform Fireblocks ($550 million), cryptocurrency exchange FTX ($500 million), and Ethereum-backed software company ConsenSys ($450 million). The report’s authors, including Anton Ruddenklau, global leader of financial technology, KPMG, highlighted that investment figures for first half of 2022 were double of all years before 2021. 

On the basis of information by Cointelegraph, Ruddenklau emphasised that over-investments in 2021 and first half of 2022, along with chances for a potential recession, rising inflation, interest rates and the Russia-Ukraine conflict, could result in a fall in investments for this year. On the basis of data from July, KPMG’s prediction for a cryptocurrency investment downturn seems to have happened along with monthly inflows into the blockchain venture capital market falling 43% this month. Alexandre Stachtchenko, director of blockchain and cryptocurrency assets, KPMG France, mentioned in the report that cryptocurrency companies with healthy risk management policies, long-term vision and cost-risk management practices will be able to survive the bear market.

“Of course, some cryptos will die out — particularly those that don’t have value propositions. That could actually be healthy from an ecosystem point of view because it’ll clear away the mess that was created in the bull market. The best companies will be the ones that survive,” Stachtchenko added.  

Moreover, Cointelegraph noted that Statchenko spoke on financial institutions becoming interested in blockchain infrastructure solutions and stablecoins to focus on the advantages of distributed ledger technology (DLT).

(With insights from Cointelegraph)

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