Crypto enthusiast: You can’t make an unambiguous conclusion that you can no longer invest in cryptocurrencies and you can’t use them
In Q3 of this year, the volume of investments in digital currencies amounted to $879 million, which turned out to be a record-low amount since the second quarter of last year. Nevertheless, this is significantly more than investments in other fintech, Pitchbook analysts noted.
The company’s report says that decentralized finance and Web3 are still leading in the structure of venture capital investors’ portfolios amid a reduction in the number of transactions. Analysts also point to a decrease in investment in new digital technologies for the third quarter in a row.
“The fall of FTX will have a cascading effect and reverberate throughout the industry. Cryptocurrency startups will especially feel this,” Pitchbook experts say.
However, projects in the field of DeFi and Web3 are still attractive areas for investors — they are ahead of fintech and biotechnology. Over the past 12 months, investments in the crypto industry amounted to $6.5 billion.
Pitchbook is confident that investors continue to be interested in crypto startups, but amid the ongoing downturn, the selection of such projects has become more stringent. In addition, analysts are confident that the crisis has little effect on companies working on the blockchain.
The crisis, largely associated with the collapse of FTX and Celsius, is not at all an objective argument in favor of crypto skeptics who consider the industry unreliable. This opinion was expressed by the CEO of Crypto-A, investor and miner Alena Narignani.
According to her, members of the cryptocurrency community believe that the negative events of recent months are unlikely to be connected. It’s just that a lot of new projects have appeared on the market, and some of them may not be so successful.
“It is impossible to draw an unambiguous conclusion that it is no longer possible to invest in cryptocurrencies and one cannot use them. Nobody canceled safety precautions when choosing a crypto project, platforms. Negative situations that occur as force majeure, when a really large and unreliable site goes bankrupt, or something happens to it, have not been canceled either. When the Central Bank revokes the license from banks, even large ones, we do not stop using deposits and bank cards. The market is becoming more civilized, you can’t tar everyone with the same brush, the technology is quite young, it is only developing,” Narignani said.