The crypto sector secured over $14 billion from venture capital firms in the first half of 2022: KPMG

Crypto Sector Bagged Over $14 Billion from Venture Capital Firms in First Half of 2022: KPMG

The crypto sector successfully completed 725 deals in the first half of this year. A new report by KPMG claims that the industry has so far secured an investment of $14.2 billion (about Rs 1,13,500 crore) in 2022. The organization is one of India’s renowned providers of risk, financial and business consulting. As part of its new findings, Germany’s crypto trading platform Trade Republic emerged as the largest crypto investor, pouring in $1.1 billion (approximately Rs 8,800 crore).

Among the top four investors in crypto projects, the Fireblox digital asset custody platform contributed $550 million (approximately Rs 4,400 crore) and ranked second in the index for the largest investors in digital assets.

According to KPMG, FTX crypto exchange and Ethereum software firm ConsenSys took the third and fourth positions with investments of $500 million (about Rs 4,000 crore) and $450 million (about Rs 3,600 crore). test result,

The report highlights that crypto-focused investment figures for the first half of 2022 alone have doubled in all years prior to 2021.

“(This) highlights the growing maturity of the space and the breadth of technologies and solutions that are attracting investment,” the report said.

The KPMG report comes at a time when Mike Kondolis, a US-based intellectual property lawyer, has claimed that the blockchain sector has risen to prominence. So far this year, over 3,600 trademark applications have been filed in the US in the areas of cryptocurrency, Web3, metaverse, and non-fungible tokens (NFTs), as of August 31, he said. The number of trademarks registered around these industries was 3,516 in all of 2021.

However, despite the progress, KPMG has warned of an impending recession in the crypto industry.

The impending political downturn, inflationary economic climate, and interest rate hikes have been named as reasons that will have a negative impact on the crypto sector in the times to come.

Even at present, the total market cap of the crypto sector is well below the trillion-dollar mark. According to CoinMarketCap, the total crypto valuation is $939 billion (approximately Rs 75,03,800 crore), which crossed the $3 trillion (approximately Rs 2,39,72,100 crore) mark last year.

Meanwhile, KPMG expects crypto-focused investment efforts to gain momentum in underdeveloped fintech markets, especially in Africa.

Binance crypto exchange is already in talks with Nigerian authorities to set up a crypto-focused special economic zone that will incubate related startups and businesses in the region.


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