The crypto space has been in an uneven state around the world, with Web3 startups flourishing in the Middle East and Asia, while North American crypto entrepreneurs face challenges under tough macroeconomic and regulatory conditions, according to Animoca Brands CEO Yat Siu.
Speaking with Cointelegraph at the Collision conference in Toronto, Siu highlighted the main differences between the environment for crypto businesses worldwide, stressing that it is not “as bad as it sounds.”
According to him, Web3 startups can still raise funding from venture firms, but current conditions like higher interest rates across the globe along with a downturn in crypto asset prices have raised the bar for newcomers.
“Valuations have come down, obviously, but the number of builders entering the space, the number of smart contracts being deployed, the number of people is still on the increase. Generally, we’re very bullish," he noted, adding that Animoca had added nearly 60 investments to its portfolio in the past months.
Despite being active, the space isn’t as strong as it used to be. According to a recent PitchBook Crypto Report for the first quarter of 2023, crypto companies raised $2.6 billion across 353 investment rounds. Deal values decreased 11% quarter-over-quarter, and total deal value decreased 12.2%.
Siu’s comments come on the heels of major developments affecting the crypto space since FTX’s dramatic collapse in November 2022. In the United States, for instance, the Securities and Exchange Commission launched a crackdown on crypto firms in an attempt to regulate the industry through enforcement actions.
In contrast, Hong Kong has implemented a licensing system for crypto businesses in order to mitigate the risks associated with
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