Crypto Funding Deals Suffer 50 Percent Loss Due To COVID-19

Jyoti  |  May 16, 2020

In the month of March, the virtual currency funded crypto projects only had to deal with the repercussions of COVID-19 but in April, the situation got worse for the projects. recently, published the Web3 Funding report for the month of April which explains that except Bakkt deal which raised a total of $300 million funds, the 32 crypto funded deals are down by over 50 percent. Compared to March 2020, when these deals raised a total of $117 million funds, in April it was just $50 million.

Cryptocurrencies Surging But Crypto Funded Deals Are Going Down 

The report shows that although the value of most of the cryptocurrencies is surging up in this time of COVID-19 pandemic, the traditional economy is going down.

Since the year 2019, the VC funding going down, but it did not threaten the investors very much. The numbers recorded for the month of April shows that the present economic environment is very terrifying for the investors.

Due to the coronavirus pandemic, the unemployment in the US has reached near 15 percent and this has raised the fear of an economic slowdown among the people.

Currently, the multiple sectors supporting the economy have been certified by Congress and the Federal Reserves for the unprecedented stimulus payment. That means the startups could get paid through the paycheck loans, but the people outside and inside the VC world did not support this idea. 

Startups Being Backed By Wealthy Firms

The VC world mentioned that there are startups who already are backed by wealthy investors, so, there is no point to pay them. 

The VC investment might either get very little support or no support from the government sources. 

In April 2020, the DeFi and FinTech projects signed a deal and earned up to 40 percent of interest from it and altogether the projects raised over 60 percent of funds.

It is to be noted that all the gaming-related projects which got proper attention from media did not secure any deal in April.

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