Despite the ambiguous regulatory context in the United States, the country remains the one that attracts the greatest number of crypto investments. It remains so one of the most important crypto startup innovation hubs. Indeed, according to a report, nearly half of capital investment goes to US cryptocurrency companies.
The United States, an innovation hub for crypto startups despite the lack of regulation
According to the report released by crypto investment firm Galaxy Digital on July 14, US-based crypto-related startups had a significant share of interest from venture capital (VC) firms.
” US-based crypto startups accounted for more than 43% of all deals closed and have raised more than 45% of the capital invested by venture capital firms. »
We also learn that the United Kingdom absorbed 7.7% of capital investment while Singapore and South Korea attracted 5.7% and 5.4% respectively.
However, the report clarifies that the total amount of capital invested in crypto and blockchain startups is down from the past quarter.
Why crypto investments are falling in the United States
In Galaxy’s report, we can read that: “Only $720 million was raised by 10 new crypto-VC funds in the second quarter of 2023”. He further emphasizes that this is the lowest since the start of the pandemic COVID-19 in the third quarter of 2020.
” Crypto and blockchain startups have raised less money in the past three quarters combined than they did in the second quarter of last year. he adds.
This fall in investments is attributable to the Securities and Exchange Commission (SEC), the policeman of the American stock market. He has been on trial since 2020 against Ripple, a crypto payments company. Lately he has dragged Binance and Coinbase before the courts. Ripple’s CEO had affirmed that the SEC wants to kill innovation in the crypto industry.
On July 13, a judge partially ruled in favor of Ripple. Analysts had predicted that a victory for Ripple could give hope to the crypto industry and reinvigorate it. Could we see more funding flowing in by the end of 2023.
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