Crypto Funding Plunges 91% in January (compared to last year)

CoinDesk | Brandy Betz | Feb 2, 2023

Image: CoinDesk, January 2022 vs 2023

Analysis shows crypto startups only raised $548 million last month (January 2023) plunging 91% year over year.

• Venture capital (VC) and other investments in privately held crypto startups amounted to $548 million last month, a huge drop from $6 billion in January 2022, according to data compiled by CoinDesk.
  • The number of transactions shrank to 62 from 166, and most of the 2023 deals were for smaller, early-stage companies.

See:  FT Partners Jan 2023 Blockchain and Crypto Market Update Report

• Funding rounds can take months to finalize or close, and some of the investments reflected last month were likely already raising money when the FTX collapse started in early November. The coming months will show exactly how much investment capital dried up after the FTX scandal came to light.
• FTX’s demise created doubts about the whole centralized exchange (CeFi) model of trading crypto, and persuaded some that decentralized finance (DeFi) and decentralized exchanges (DEX) are the better way forward.
  • CeFi deals sinking 99% to $22.8 million in January 2023. Also, the CeFi firms that managed to raise money had a tie to DeFi.

Continue to the full article --> here

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org

Buying a Canadian MSB and Reviewing FINTRAC RPAA and Financial Due Diligence

Why MSCI Is Removing Strategy From Its Indexes

How Is Crypto Market Cap Calculated? What a Change in the Top Coins Really Tells You

What Happens When AI Agents Start Trading Together?

Canada’s VC Totals Are Reliant On Mega Deals

Why Canada Is Making It Cheaper to Leave Your Bank

CSA Tokenization Report Shows Where Canada May Scale First

Creative Ways to Boost Team Morale

Webull Adds Free Data as Canadian Brokers Compete Beyond Fees

BBVA Deploys Canadian AI for Derivatives Pricing