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Crypto Firms Raise $2.5 Billion in First Quarter: ‘Lackluster’ 29% Increase – DL News
- Cryptocurrency investments are compared to previous bull runs.
- MoonPay partners with PayPal on cryptocurrencies in the US.
- BTC-e operator pleads guilty to money laundering conspiracy.
Crypto Firms Raise $2.5 Billion in First Quarter
According to one study, crypto companies raised nearly $2.5 billion in venture capital investments in the first quarter of this year, which represents a 29% increase in dollar value and an increase in the number of deals of the 68% on a quarterly basis. research report compiled by Galaxy Digital.
“After 3 consecutive quarters of declines in the number of deals and invested capital, both increased in the first quarter,” according to the report, which also notes that, alongside the sharp increase in the number of deals, which rose to 603, the quantity of invested capital earned a relatively modest value. 29%.
While Bitcoin and the broader cryptocurrency market rose sharply in the first quarter, leading to a renewed sense of optimism, the investment amount “appeared slightly more muted than sentiment,” the report said.
“Higher interest rates will continue to pose a challenge for venture funds seeking to raise capital and, therefore, for startups seeking investment from such funds,” he said, adding that the hangover in appetite for Cryptocurrencies after the 2022 outbreaks may also have provided a brake.
The researchers noted that “sentiment and activity are improving, but are still well below levels seen during previous bull markets.”
Cryptocurrency bull runs in 2017 and 2021 showed stronger correlations between the amount of venture capital dollars invested and cryptocurrency prices, they said. In 2023 and 2024, investments remained “well below previous levels, while cryptocurrencies rallied.”
Despite a “challenging” regulatory environment, US-based companies continued to raise the most capital in the first quarter, raising 43%. Singapore had 11%, the UK 10%, Hong Kong 8% and France almost 6%.
MoonPay collaborates with PayPal on cryptocurrencies
Web3 infrastructure company MoonPay announced a new business relationship that allows US users to purchase cryptocurrencies using their PayPal accounts.
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PayPal is now available to MoonPay users in the United States and will be accessible through MoonPay partner networks by mid-year.
BTC-e operator pleads guilty to money laundering
Russian citizen Alexander Vinnik, operator of the former BTC-e cryptocurrency exchange, has pleaded guilty to charges of conspiracy to commit money laundering. second to a press release from the U.S. Attorney’s Office in San Francisco.
From 2011 until its shutdown in 2017, BTC-e processed more than $9 billion in transactions worldwide and “was one of the primary ways cybercriminals around the world transferred, laundered, and stored assets. criminal proceeds of their illegal activities.” “, the statement reads.
Vinnik faces a maximum of 20 years in prison. The sentencing date has not yet been set.
Drivers of the cryptocurrency market
- Today, Bitcoin is up 1.13% to $63,896.82.
- Today, Ethereum is up 1.83% to $3,167.19.