Crypto.com Capital, the venture part of Crypto.com, is reducing the number of investments it makes because of growing worries about how long the Exchange sector’s sky-high prices will last.
According to a report from Bloomberg, Crypto.com Capital has made fewer investments in the last 18 months. In January 2022, the company said it had $500 million set aside to invest in startups in the field. Dealroom analysts have seen a drop in Crypto.com’s purchases since the beginning of 2023. Only four deals have been made, compared to 35 in the two years before.
Crypto.com CEO Kris Marszalek Addresses Investment Strategy
Exchange CEO Kris Marszalek told Bloomberg that the company had lost funds and that the main reason for the problem was inflated valuations within project teams. In the face of what he called “very generous” valuations, Marszalek stressed the importance of being smart when making financial choices. However, he did say that the venture arm had made around 70 investments so far, though he did not give an exact number.
Even though care was exercised, recent venture capital deals in the industry have still raised a lot of money. Exchange Capital helped support Berachain, a blockchain network run by founders who don’t want to be identified. The company raised $100 million at a valuation of at least $1 billion.
As a result of Crypto.com’s decision to reduce its business activities, other companies are also becoming more cautious in the Exchange market. Leading venture capital firm Andreessen Horowitz, for example, has turned its attention away from Exchange acquisitions to focus on artificial intelligence for now.
Investors and industry players are trying to balance having an advantage of chances and managing risks in the constantly changing crypto landscape. This is because market valuations are still uncertain.
