• Crypto fund increased
• Already supported more than 20 startups
• Competition is catching up
Crypto.com is expanding its offering
Trading in cryptocurrencies is one of the current trends in the financial world – and is a competitive field. With the prospect of the Web3 Internet concept, companies from the industry are already positioning themselves to participate in the next big boom. This also applies to crypto exchanges such as Crypto.com: The platform advertises that it is the “world’s fastest growing crypto app” and, according to the company, has more than ten million users. Over 250 cryptocurrencies can be bought and sold in the application, and the makers keep announcing new additions. Trading in NFTs has now also started. US actor Matt Damon has also been promoting Crypto.com since October 2021. Now there is news again from the stock exchange.
Crypto funds significantly increased
Crypto.com Capital, the trading platform’s investment arm, announced in a recent press release that Jon Russell has joined the firm’s venture fund as a new partner. The previous technology journalist is now responsible for the fund, which was only launched in March 2021 with a volume of 200 million US dollars and is fully financed by the company’s balance sheet, according to the company. Right from the start, the goal was to promote young startups in the industry. With Russell’s hiring, the fund’s volume has now increased to $500 million, according to TechCrunch. Crypto.com hopes that this step will bring even more public awareness to crypto trading and reach one billion users.
Focus on Metaverse, Blockchain, NFTs and DeFi
Although the fund, led by Crypto.com co-founder Bobby Bao, invests independently, partner companies can benefit from expertise and various advantages, according to the investment department. According to the press release, companies are being sought that are active in the areas of metaverse, blockchain gaming, NFTs or decentralized finance. So far, over 20 collaborations have been signed, including with companies such as blockchain operator Efinity, avatar provider Genies, DeFi wallet DeBank, Metaverse developer Alethea AI, NFT platform YGG SEA and software developer Matter Labs. In Series A financing rounds, the young companies would usually be supported with up to 10 million US dollars. “Crypto.com Capital isn’t even a year old, but we’re already working hand-in-hand with dozens of world-class founders and we want to find more,” Bao said in the announcement. “The Crypto.com Capital fund offers a unique advantage to help the world’s best Web3 founders and startups realize their potential, and I can’t wait to do my part,” Russell is quoted as saying.
Investments are intended to strengthen the crypto industry
According to the new partner of the investment company, the main aim of expanding the fund is to drive growth in the crypto industry. “If you’re in the industry, it’s in your interest to help companies grow in the ecosystem and the ecosystem itself grow,” Russell told TechCrunch. Despite being included in the fund, the young companies are not obliged to offer special conditions to the crypto exchange or to offer their tokens there. Although there are some black sheep in the industry, the potential of cryptocurrencies cannot be dismissed out of hand. “There’s certainly a lot of hype and hot air in the crypto and Web3 industries, but it’s impossible to ignore the talent that is pouring into the industry,” continued Russell. In addition, it is also important to closely follow the trends in the industry and to react to new developments.
More investments than ever in crypto startups
Crypto.com is not the only one investing in startups from the industry: According to a report by the investment company Galaxy Digital, financing activity for crypto startups is at a record high. In 2021, more than 33 billion US dollars in venture capital flowed into young companies in the crypto trading and Web3 sectors – more than in all previous years combined. – Trade bitcoin with Plus 500 – how it works. 72% of retail investor accounts lose money when trading CFDs with this provider. You should carefully consider whether you can afford to take the high risk of losing your money. – “Valuations in the crypto/blockchain space were 141 percent higher than the rest of the venture capital space in the fourth quarter, underscoring a founder-friendly environment and intense competition among investors to allocate deals,” TechCrunch quoted the report as saying.
Competitors are also taking money into their hands
And the competition doesn’t sleep either. Just a few days earlier, the crypto exchange FTX presented a $2 billion crypto fund that includes more than 15 startups. And according to TechCrunch, the competitors Coinbase and Binance should also invest in the Web3 area. The startups are not only supported by crypto exchanges. Investments come from numerous companies rooted in the industry. According to TechCrunch, cybercoin developers such as Solana, Avalanche and Polkadot were also pumping funds into blockchain startups.
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