Friday, January 21, 2022

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    The race to fund crypto’s future sure is expensive  – TechCrunch

    Welcome to TechCrunchExchange, a weekly startup and market newsletter.It is inspired by Daily TechCrunch + Column It is the origin of the name. Want to put it in your inbox every Saturday?sign up here..

    Welcome to the weekend! arrived. Barely, I think, considering how tired everyone is on the phone and Twitter. But we also beat the business day. In other words, we can lean forward and enjoy for a minute. Yes, today we are talking about cryptography. Willingly!

    The competition to fund the future of crypto is certainly expensive

    I was impressed The pace at which Coinbase invested capital To other companies in the larger blockchain market. Because U.S. public enterprises can pay a relatively small amount (when stacked next to their revenue base) and buy both startup ownership and information access to provide early warning data about what’s popping out. This is a wise move. Given that Coinbase is a clear incumbent in the crypto market and, to some extent, a gatekeeper, that investment makes sense.

    But there is an investment, investment.. And the newly announced FTX fund seems to be more aggressive than what Coinbase managed, despite a fairly rapid trading rhythm.

    FTX Fund Crypto totals about $ 2 billion And every interview, May be paid Only this year..It’s a wild pace of investment, probably reminiscent of one How fast a16z will make the recent $ 2.2 billion crypto fund work..

    Some questions:

    1. Why does the crypto market need so much money when the user base is so small compared to the large Internet?
    2. Why are we using so many fiat money to raise money for cryptocurrencies?

    These are interrelated questions. They are summarized in my simple confusion as to why it is so difficult to build something useful in the crypto market. Coinbase and FTX are heading towards the edge of the world of cryptocurrencies, moving money back and forth about the traditional economy and its future. It’s wise that they’re investing, but I’m a little confused by the amount they’re investing in and the traditional venture capitalists lobbying blockchain startups.

    Two major blockchains have been established and are hardly new (Ethereum was invented in 2013 and launched in 2015. The Bitcoin white paper is 2008); Stablecoin exists and there are many stable players. And a lot of capital went to the NFT marketplace and some crypto games. Some of them even build a modest player base. However, when comparing the amount of money that flows into the space to the amount that can be seen in terms of available results, it feels a bit concentrated.

    Institutional Investor Report Last year, a total of $ 32.8 billion was invested in the “cryptocurrency and blockchain technology business.” Perhaps many things built with that money will soon come out and surprise us, but even now, more than a decade after Bitcoin said “Hello World”, we still used the blockchain. I’m not using apps or service days today. Of course, unless I’m tinkering with parts of the crypto world for research purposes.

    And I spend more time online than I want to admit! Perhaps the new FTX fund will bring mass market blockchain products to market, more than just a means of speculation. Let’s wait and see, I guess.


    The race to fund crypto’s future sure is expensive  – TechCrunch Source link The race to fund crypto’s future sure is expensive  – TechCrunch

    The post The race to fund crypto’s future sure is expensive  – TechCrunch appeared first on California News Times.

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