The crypto boom has died down. If in 2022 there were record investments in this sector, 2023 shows a totally different picture. And heartbreaking. Regulatory uncertainty and problems with companies like FTX have destroyed all confidence in this technology. And this is reflected in the devastating graphic that illustrates this article.
The investment in crypto disappears from one year to the next. Fortune’s analysis of Pitchbook data is very clear. All investors are fleeing the crypto sector and there are very few who have dared in 2023 to put money on the table to help them. Even those who bet the most on crypto already believe in investing in them.
The image is not complete, since the 2023 column only represents data up to May, but the beginning of the year is disastrous. Cryptocurrency companies have raised just $500 million globally.
98% less. The contrast in the figures is enormous. In 2022 there were some 21,600 million dollars invested in this type of company, but in 2023 they only have 500 million. 98% less. A total collapse that shows the enormous doubts that exist around this sector.
Start again. The fall in investment puts the crypto sector at a moment equivalent to what it was before the Bitcoin boom in 2018. The interest seems to have passed and this technology is now facing a new phase. With less ‘hype’, but also more stability like the one that Europe now offers with its new legislation.
The latest data from PitchBook is not so catastrophic, but the disaster is clear. According to data from the same analyst firm for the first quarter of 2023, crypto companies have raised a total of $2.6 billion, which is 11% less than the previous quarter and 80% less than the same period last year. past.
In total, there would have been 353 financing rounds for this first quarter of 2023. Figures far removed from the almost 1,000 operations per quarter at the beginning of 2022, where more than 12,000 million dollars were invested worldwide per quarter.
Pessimism about the widespread adoption of crypto. As the report notes: “Widespread adoption of cryptocurrencies is unlikely until better regulations and guidelines are put in place. The lack of clear regulation is a major concern for the industry and is seen as a limiting factor.”
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