How Is the Crypto Crash Affecting Investment Trends?

While Bear markets are known as a time of renewal for financial markets, this is especially for the crypto market. Being one of the youngest financial markets, the crypto community as a whole is still figuring out what works and what doesn’t from a technological and financial perspective. As this process continues and is boosted by the latest winter, institutional and private investors are working on setting new investment trends.

Back on May 25, Andressen Horowitz doubled down on blockchain when it announced the raising of a $4.5 billion crypto fund. The move took place amid a crash that had resulted in many investors fleeing the crypto market. The fund, which doubled the size of the firm’s latest fund, also followed the announcement of a new crypto research team back in April. Arianna Simpson, a general partner at Andreessen Horowitz, referred to the fund’s motivation by telling CNBC:

“Bear markets are often when the best opportunities come about when people are actually able to focus on building technology rather than getting distracted by short-term price activity.”

While the firm’s move has been one of the most significant news of the past month, many other organizations are investing heavily in crypto startups. This has been especially true when it comes to big players in the space, with companies like Binance and KuCoin forming their own investment and incubation programs. 

Binance Labs raised $500 million earlier this month to “boost blockchain, Web3, and value-building technologies” with participation from DST Global Partners and Breyer Capital. KuCoin, on the other hand, raised $150 million back in May during a funding round to expand its trading services with the mission “to support the growth of Web 3.0 and the crypto markets.”

With the crypto market capitalization going under the $1 trillion mark, Venture Capitalists have certainly taken a more measured approach when investing in crypto startups. However, as seen during Consensus 2022, most of them remain optimistic about crypto adoption and the future of blockchain, crypto, and Web3.

Xinlu YU, Head of KuCoin Labs; Jason Urban, Co-Head Galaxy Digital Trading at Galaxy Digital; and Stefan Rust, Founder of Laguna joined Grit Daily House as part of Consensus 2022. During the event, they sat with Linqto’s Chief Strategy Officer Karim Nurani to talk all about Crypto Investment Trends in 2022.

If you missed the chance to attend Grit Daily House in person and want to hear what these experts in the DeFi, Venture Capitalism, and crypto incubating industries have to say about crypto investment trends, worry not. You will be able to watch the panel in the video below and find our other panels on Grit Daily’s official YouTube Channel.