Coinbase, Galaxy, Polygon, Multicoin, and other top crypto VCs share their 2024 funding outlook @TheBlock__
— NatsuneOki 📍 EU (@NatsuneOki) December 27, 2023
👉 Coinbase Ventures: Increasingly optimistic, expects activity to grow, focuses on crypto infrastructure and consumer applications, supports Base Ecosystem Fund.
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2024: Decisive Turning Point for Crypto Industry After a Challenging Year
Mon 01 Jan 2024 ▪
3
min of reading ▪ by
Invest
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The year 2023 has been broadly challenging for stakeholders in the crypto industry, particularly in terms of financing. However, with the resurgence of cryptocurrencies and the prospects on the horizon, many industry players believe things will improve by 2024. This optimism is not shared by everyone, though.
The Optimists Regarding the Financing of the Crypto Market in 2024
In 2023, the crypto financing landscape faced formidable challenges. It suffered a staggering decrease of 68% to $10.6 billion, down from the previous year’s $33.2 billion.
Several factors contributed to this situation. Among contributory factors are high-interest rates, the diversion of attention by the expansion of AI, regulatory challenges, and the fallout from crypto collapses involving FTX, Celsius, or even BlockFi.
Yet, despite this less than cheerful state of affairs, several investors in the crypto industry think that the situation should improve by 2024. This is the stance of Coinbase Ventures, Polygon Ventures, NGC Ventures, Multicoin Capital, HashKey Capital, and Animoca Brands.
All these crypto financing actors are somewhat saying the same thing: that 2024 will be a bright year for the industry. This optimism is due, among other things, to regulatory clarity, institutional participation, and innovation in user engagement.
The position of the Pessimists
This displayed optimism is not shared by some crypto investors, like Mike Novogratz’s Galaxy Ventures. He foresees a challenging and low-key crypto financing landscape in 2024.
According to him, successful companies might face stable or declining funding rounds. This could be because the community of partners would be limited, as it is over-indexed on illiquid investments.
Without necessarily embracing this viewpoint, Shima Capital maintains an optimistically cautious stance. This investor has faith in the long-term potential of the crypto market. However, it acknowledges the inherent risks in this industry.
In conclusion, despite the challenges of 2023, key players in the venture capital space foresee a positive trajectory for crypto financing in 2024. This perspective resonates with projections from several companies related to crypto such as VanEck, Bitwise, Bitget, and Messari. All are predicting record-breaking achievements for the industry in 2024.
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Diplômé de Sciences Po Toulouse et titulaire d'une certification consultant blockchain délivrée par Alyra, j'ai rejoint l'aventure Cointribune en 2019. Convaincu du potentiel de la blockchain pour transformer de nombreux secteurs de l'économie, j'ai pris l'engagement de sensibiliser et d'informer le grand public sur cet écosystème en constante évolution. Mon objectif est de permettre à chacun de mieux comprendre la blockchain et de saisir les opportunités qu'elle offre. Je m'efforce chaque jour de fournir une analyse objective de l'actualité, de décrypter les tendances du marché, de relayer les dernières innovations technologiques et de mettre en perspective les enjeux économiques et sociétaux de cette révolution en marche.
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.