Startups in the cryptocurrency space have had a strong start to 2022, with news players in the crypto industry bagging hundreds of millions of dollars in funding despite skepticism of investors about the instability of crypto prices recently.
Various privately-held firms has disclosed big cash infusion in January 2022, the Bahama based crypto exchange FTX and its associates in the United Stated who has a valuation of $32 billion and $8 billion respectively, has raised a combined $800 million.
A crypto infrastructure start-up known as Blockdaemon gained $155 million on a $1.3 billion valuation, while Fireblocks, a crypto infrastructure start-up, was valued at $8 billion in a $550 million round as most deal negotiation started In 2021.
Cryptocurrencies and the ventures launched to aid the development of the industry has experienced rapid investment, with blockcain and crypto startups raising a whopping $25 billion in 2021, According to CB insight data, crypto start up grew 800% as venture capitalists invests in tokens and bitcoin.
As the instability of the crypto market continue to persist due to a sharp sell-off, with bitcoin falling by 100% to as low as $33,000 in January. The world’s largest cryptocurrency ended the month down over 18%, marking its worst start to a year since 2018.
Crypto start-ups has seen their market capitalization increase even as public tech stocks saw a pullback. The Nasdaq Composite decreased by approximately 12%.