crypto trading platform Blockchain.com is considering a “down round” of funding that could significantly devalue the company from the $14 billion it achieved this year.
according to it report Bloomberg News cited a source familiar with the matter on Sunday (October 30).
A potential round is still under discussion, but the funding will likely reduce Blockchain.com’s valuation from $3 billion to $4 billion, one of the sources said. Blockchain.com was not reached for comment on Sunday.
The company, like many of its competitors, has been struggling since the price of cryptocurrencies began to fall earlier this year. Blockchain.com announced in July that he would lay off 150 people, a quarter of his staff.
Those layoffs occurred in the wake of company layoffs. $270 million loss Three Arrows Capital is a cryptocurrency hedge fund with an estimated $10 billion in assets and has made several highly risky investments in decentralized financial projects such as the Terra/LUNA algorithmic stablecoin.
The funding comes at a time when venture capital investment in cryptocurrencies is dwindling as startups struggle due to the big digital currency plunge this year. As PYMNTS pointed out earlier this month, global VC investment for the quarter was $4.44 billion for him, down 37% from the same period last year.
Investment in cryptocurrencies has fallen precipitously due to the high risk, but there has also been setbacks as investment in technology companies generally remains weak.
Nevertheless, the volatile crypto market was not enough to convince people not to invest in digital currencies, according to a study released last week. Fidelity Investments.
The company’s survey results 58% of institutional investors People who invested in digital assets in the first half of 2022 increased by 6 percentage points from 2021, with nearly three-quarters of investors saying they plan to invest in the future.
Tom Jessop, president of Fidelity Digital Assets, said in a news release: “While the market has faced headwinds in recent months, the fundamentals of digital assets remain strong and the institutionalization of the market over the past few years has allowed recent events to take a back seat. I believe we can get through it,” he said. release. “Institutional investors have experience managing through cycles, and the key inherent factors they identified as attractive in this study are likely to remain as the market emerges from this period.”
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