In June, 83 public investments by crypto VCs were made, down from 97 projects in May 2023 and 149 projects as of June 2022, respectively, according to WuBlockchain’s monthly report. This attracted a lot of attention, as it was the lowest amount in the last 2 years.
Crypto VCs Made Only 83 Public Investments in June
WuBlockchain posted a screenshot from its monthly report on its Twitter account. The infrastructure category made up around 31% of the funded projects in the crypto market categories in June, followed by DeFi at about 18%, CeFi at about 8%, and NFT/GameFi at about 20%.
In May 2023, overall funding was $760 million. In June 2022, it was $520 million, a decrease of 32% from month to month and 71% from year to year ($1.81 billion total).
Venture Capitalists Move Away from the Sector
In the midst of crypto industry scandals that started in 2022, venture capitalists have continued a tendency. Venture capitalists left the sector as a result of the news of regulatory uncertainty, market declines, and unheard-of crashes.
Venture Capitalists Also Impacted by SEC Lawsuits
The SEC filed several lawsuits against Binance and Coinbase, the two biggest cryptocurrency exchanges on the market, at the beginning of June, shaking the sector and wiping out billions of dollars worth of assets owned by SEC billionaires in this sector. Given that the Fed is still considering raising interest rates, venture capital firms might also be less keen to engage in a highly risky sector.
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