• Advertise
  • Submit a Press Release
NewsBTC
Bitcoin & cryptocurrency news today, price & technical analysis
Price & Market
Cap Data from
Nomics Logo
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • TradeeToro
  • Gamble +Try
  • Play GamesTry
  • BUY BITCOINTry
No Result
View All Result
NewsBTC
No Result
View All Result
Price & Market
Cap Data from
Nomics Logo
Home Cryptocurrency news

Despite Bear Market, Crypto Startups Got Boosted By Billions In 2018

Nick Chong by Nick Chong
2 years ago
in Cryptocurrency news
Reading Time: 3min read
Despite Bear Market, Crypto Startups Got Boosted By Billions In 2018
Advertisement
Listen to Article

Taking a brief gander at crypto’s daily trading volumes, it is more than apparent that the number of investors, along with capital allocated, has all but dissipated over the course of 2018. Some have even argued that Bitcoin has left the mainstream consciousness, and could potentially be on its last legs.

Related Reading: Bitcoin Rally To Be Preceded By More “Crypto Is Dead,” Layoffs, Regulation, Says Investor

Chris Burniske, a partner at Placeholder Ventures, once explained that the days “cryptocurrency” and “blockchain” were plastered all over mainstream media, as CoinMarketCap sat open on the smartphones and laptops of millions the world over are long gone.

VC Deals in 2018 (Source: Diar)

In fact, more likely than not, retail investors en-masse have removed CoinMarketCap from their bookmark list, purged their Coinbase and Binance accounts, and unfollowed crypto’s most eccentric commentators on Twitter.

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

But, venture capitalists have kept their ears to the cryptocurrency ground, taking the lack of public interest in this asset class to their advantage. Face it, this subset of the investing realm is entirely opportunistic. And from their perspective, if Bitcoin and related technologies are to succeed over the long haul, now is arguably the perfect time to build solid portfolios, which accentuate asymmetric risk/return profiles.

Equity Was Hot, Even As Bitcoin Plunged

Research completed by Diar, a crypto analytics publication, recently confirmed that while the lackluster (understatement) performance of the Bitcoin price has deterred all but the zaniest traders, venture groups and investor groups of similar caliber have kept their proverbial pedals to the metal.

In the publication’s most recent edition, it was explained that while 2018 was a “bloodbath for cryptocurrencies,” what Diar deemed “blockchain-led” operations secured $1.6 billion in fiat investment over yesteryear.

We've published our latest issue for your read:#Bitcoin Retail Investor Holdings Continue Incremental Growth
Major #Cryptocurrency Miners Banking on Empty Blocks#Blockchain Focused VCs Setup Intertwined Financial Infrastructure@coinbase Lists XRPhttps://t.co/iOrtZzL9VP

— Diar (@DiarNewsletter) February 25, 2019

Diar claims that since stakes in cryptocurrency startups became a viable investment vehicle, $5 billion has been siphoned into such opportunities — no small sum to say the least. Interestingly, the $1.6 billion the crypto war chest saw comes it way in 2018 primarily pertained to trading infrastructure, rather than blockchain projects in and of themselves.

Coinbase, Circle, Kraken, three notable American cryptocurrency service providers, raised $500 million collectively even “long after the bubble burst.” Bakkt and its competitors, in ErisX and SeedCX, have also secured hundreds of millions, as many, including Fundstrat Global Advisors, argue that proper regulated, institution-friendly, and multi-faceted fiat on-ramps and off-ramps is currently something curbing this space.

Interestingly, the trend of equity investing has continued into 2019.

According to previous reports from this outlet, Chainalysis, a blockchain research and software provider startup, secured $30 million in its recent Series B, led by the San Francisco-based Accel Ventures, which also has a stake in Circle. Chainalysis, which actively aids American governmental agencies (Department of Justice, Securities and Exchange Commission, etc.) in crypto-related cases, is looking to bolster its staffer lineup and European operations with this funding influx.

Coin Metrics, a Bitcoin-centric blockchain research unit based out of Massachusetts, recently raised $1.9 million, as it seeks to make much-needed information available to a wider population, thus increasing the health of this nascent space.

Kraken itself even made a nine-figure deal, completing the biggest industry deal of 2019 so far. The company acquired CryptoFacilities, a European Bitcoin derivatives provider, to start its foray into the array of alternative investment products. The details of the deal were scant, but it was explained that Facilitates gained at least $100 million from its business partner.

Institutions Continue Bolstering Crypto Holdings

Although much of crypto startups have garnered capital from Silicon Valley venture groups, like the world-renowned Andreessen Horowitz, this jaw-dropping funding figure has hints of institutional involvement sprinkled throughout.

Case in point, citing a number of sources familiar with the matter, Singapore’s primary sovereign wealth fund, GIC, purportedly participated in Coinbase’s historic $300 million funding round that concluded in October 2018. For those who missed the memo, this round, which valued the now-XRP-friendly Coinbase at $8 billion, was led by Tiger Global and Andreessen Horowitz. So interestingly, Singapore’s involvement in the San Francisco-based company wasn’t initially disclosed.

GIC isn’t the only incumbent of legacy finance to have allocated millions to the Bitcoin cause. Bakkt’s parent company, the Intercontinental Exchange (ICE), gave its cryptocurrency foray hundreds of millions in capital, as it nears its launch.

The University of Michigan’s endowment, valued at a hefty $12 billion, was recently revealed to have its eyes set on giving a hefty cheque to a16z, specifically for its CNK fund that invests in blockchain ventures.

And arguably most notably, two pension funds headquartered in Fairfax County, Virginia, were the principals behind Morgan Creek Digital’s $40 million venture fund, which has up to a 10% allocation in physical cryptocurrencies, like Bitcoin and Ethereum, as the remaining capital gets siphoned into equity deals with promising projects with visions of grandeur.

Featured Image from Shutterstock
Tags: cryptoindustryinvestment
TweetShare13
Nexo Logo
BitStarz Player Lands $2,459,124 Record Win! Could you be next big winner? Win up to $1,000,000 in One Spin at CryptoSlots
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Related Posts

Finlaw Associates to Submit Draft Cryptocurrency Regulation to Indian Govt as Community Demands for Clarity, Mr. Mishra Explains

Finlaw Associates to Submit Draft Cryptocurrency Regulation to Indian Govt as Community Demands for Clarity, Mr. Mishra Explains

2 days ago
Bitcoin, cryptocurrency, BTCUSD, BTCUSDT

Bitcoin En Route to $30,000 After Price Falls ~12% in a Day; Here’s Why

3 days ago
Highly Anticipated Ethereum Fee Model Upgrade is Expected in 2021

Highly Anticipated Ethereum Fee Model Upgrade is Expected in 2021

3 days ago
btcu

The Brilliant Minds Behind the BTC Ultimatum Project, and Their New CEO, Eric Ma

4 days ago
Can Blockchain Help Enterprises Navigate GDPR Headaches?

Can Blockchain Help Enterprises Navigate GDPR Headaches?

4 days ago
altcoins bitcoin crypto alt season altcoin xrp ethereum ripple litecoin

Centralized Wealth: The Downside To Institutional Bitcoin Buying

4 days ago

Premium Partners

Top Brokers

eToro

eToro

Review · Visit
Changelly

Changelly

Review · Visit
Evolve Markets

Evolve Markets

Review · Visit
ArbiSmart

ArbiSmart

Review · Visit
PrimeXBT

PrimeXBT

Review · Visit
Moneta Markets

Moneta Markets

Review · Visit

Top Casinos

BitStarz

BitStarz

Review · Visit
CryptoSlots

CryptoSlots

Review · Visit
mBit

mBit

Review · Visit
CryptoGames

CryptoGames

Review · Visit
Bonusfinder DE

Bonusfinder DE

Review · Visit
Bspin

Bspin

Review · Visit
Wolf Bet

Wolf Bet

Review · Visit

Top Sportsbooks

1xBit

1xBit

Review · Visit

Press Releases

Cryptowisser Releases Report on Exchanges With Lowest Fees

January 22, 2021

LABS Group Announced Strategic Partnership with Centifuge to Provide DeFi Collateralized Property Backed Lending

January 22, 2021

Jump-starting Crypto Adoption: Aurix IEO Scheduled for January 21st on ExMarkets!

January 22, 2021

Newsletter Signup


ABOUT US

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

COMPANY

  • Advertising
  • Comments Policy
  • Privacy Center
  • Sitemap
  • About Us
  • Contact

Technical Analysis

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Ripple (XRP)
  • Chainlink (LINK)
  • Cardano (ADA)
  • Tezos (XTZ)

LINKS

Auto Trading Software ▸

Cryptocurrency news

  • Bitcoin
  • Ethereum
  • Ripple
  • Chainlink
  • Cardano
  • EOS
  • Tezos

© 2020 NewsBTC. All Rights Reserved.

  • News
    • Bitcoin
    • Ethereum
    • Ripple
    • Cardano
    • Tezos
    • EOS
    • Chainlink
    • Sponsored
    • Press Releases
  • Analysis
    • Bitcoin (BTC)
    • Ethereum (ETH)
    • Cardano (ADA)
    • Chainlink (LINK)
    • Litecoin (LTC)
    • Tezos (XTZ)
    • Zcash (ZEC)
    • EOS
    • YearnFinance (YFI)
  • Education
    • Accepting Bitcoin payments
    • Using Bitcoin
    • What is Bitcoin Mining
    • How to Trade Bitcoin
    • How to Buy Bitcoin
    • Digital Currency Exchange
    • Proof of Existence
    • Is Bitcoin legal?
    • Bitcoin Books
  • Trading Course
  • Directory
    • Crypto Businesses
    • Bitcoin Brokers
    • Casinos
    • Sportsbooks
  • Trade
  • Gamble +
  • Play Games
  • BUY BITCOIN

© 2020 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.