Report Shows Cryptocurrency Funding Might Be Hit Hard Due To Coronavirus
One of the big four accounting powerhouse PricewaterCoopers (PwC) has released a new report that shows that their cryptocurrency funding nose-dived by a whopping 40% in 2019. The report shows that it’s funding reportedly went from $3.72 billion to $2.24 billion. Meanwhile, the values of M&A deals took a staggering backward leap when it went down 76% when it moved from $1.9 billion to $451 million.
While mining and exchanges took over the whole of 2018, the attention of investors was diverted to other sectors of the financial market a report has shown. According to a list that showed the list of the biggest fundraiser in 2019, stock trading app Robinhood which allowed users to invest in crypto was top of the list. The stock trading app reportedly topped the list with it’s $373 million Series E round.
Ripple, a blockchain company based in San Fransisco came in second place while South Korean based cryptocurrency exchange Bithumb came in third place respectively. It should be noted that Ripple came in as the second-placed most valuable cryptocurrency trading company after it’s $200 million Series C round.
In a tabulated report that shows the ranking of companies according to their equity fundraising, it shows Robinhood, Ripple, and Bithumb in first, second and third places respectively. Morgan Creek capital investment and Dst global ventures coming fourth and fifth and finality international coming sixth. Layer 1, Thundercore, Anchorage and Celo completed the top ten.
According to the report submitted, it showed that not only did the dwindling capital affect PwC, it also noted that they were affected by their change in geographical location. It showed that Asia and EMEA gained more ground in 2019 with U.S.A having the biggest deals.
PwC’s Henri Arslanian stated in an interview that he feels the crypto industry is not immune to the damage posed to it by the Coronavirus pandemic that is tearing the world apart. He said he feels despite some digital assets doing well in the market, the volatility would still catch up to them. “The crypto industry is not immune to the global headwinds and the number and value of crypto fund-raising and M&A deals may be impacted in 2020,” Arslanian said.
However, the accounting powerhouse has stated that they think wealth management firms like APAC and EMEA will use the current volatility in the crypto market as an avenue to invest more in the cryptocurrency market. They said they feel that more investments in the crypto market would help stabilize the market.
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