Billions Invested by VCs in 2023 Despite US War on Crypto

Despite the US government’s ongoing crackdown on the cryptocurrency industry, investors are still pouring billions of dollars into startups and projects related to digital currencies. Venture capitalists have invested heavily in 2023, despite the regulatory uncertainty and negative sentiment around cryptocurrency. This signals the continued growth and maturation of the industry, as well as the belief that crypto will play a significant role in the future of finance. Despite the challenges facing the industry, cryptocurrency remains an attractive investment for many, with innovative solutions and new use cases emerging every day.

Title 1: Venture Capital Continues to Invest Big in Crypto and Web3 Amidst Regulatory Uncertainty
Title 2: Asia Emerges as a Promising Destination for Crypto and Web3 Investments

In the face of regulatory uncertainty and attacks on the crypto and Web3 industry in the United States, venture capital investment has not slowed down. Several large investments have already been made this year, indicating a growing interest in the sector. Despite some of the industry’s largest VC firms collapsing, some investors see the current crisis as an opportunity.

LayerZero, a protocol that facilitates the creation of cross-chain decentralized applications interoperable across all major blockchains, has been valued at around $3 billion after its $135 million Series A funding round with investors like a16z and Sequoia Capital. Scroll ZKP, an Ethereum Virtual Machine smart contract development project, secured $50 million in funding at a $1.8 billion valuation with investors like Polychain Capital and Sequoia.

Moreover, some crypto companies are pivoting towards Asia as they become wary of the unfavorable US regulatory environment. Multi-million dollar funds have been launched in the region to invest in Asian Web3 and crypto startups. Hong Kong is set to become a hub for VC investment once it rolls out its crypto framework in June, with an influx of big money expected from mainland China through this legal avenue.

In March, Hong Kong investment firm ProDigital Futures announced plans to invest $100 million in crypto and Web3 startups in Asia. Recently, Bitget announced the launch of a $100 million Web3 Fund, focusing on fostering a positive attitude towards the digital currencies economy and supporting the development of the Web3 environment.

In conclusion, despite the regulatory uncertainty and attack on the crypto and Web3 industries in the United States, VC investments have not slowed down. This indicates a growing interest in the sector, with companies pivoting towards Asia due to the favorable regulatory environment. Asia can be a promising destination for crypto and Web3 investments as it continues to foster positive developments in the sector.

Leave a Comment

Google News