New Delhi:- As we approach the first half of 2023, funding for cryptocurrency startups is becoming increasingly scarce. Venture capital inflows into the industry in Q2 totaled $2.3 billion globally for the fifth straight quarter since Q1 2022 as investors clutched their checkbooks for fear of risk from tight regulation and an uncertain economy. decreased to $40 million.

PitchBook data showed that $2.34 billion was raised from 382 deals in the second quarter, up from the industry's peak of $12.14 billion in the first quarter of 2022. is decreasing. The largest additions in Q2 2023 were LayerZero's $120 million Series B funding round and Worldcoin's $115 million Series C round.

"It's a numbers game," said Lydia Chiu, vice president of business development at Ava Labs. Investors generally find valuations low and write "small checks," she told TechCrunch+. 

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In any case, regardless of what the US regulatory system thinks about this space, the old risk adage that “great companies always make money” seems to apply to cryptocurrencies as well. "Many projects with superstar teams and great use cases are always competitive," Chiu said. “The deals that everyone wants will continue to be sought.”

“This bear market has been going on for a long time and it’s not easy psychologically,” said Lasse Clausen, founding partner at early-stage crypto investment firm 1kx. “We are left with entrepreneurs who want to build something, whether it raises money or not. But in the long run, Clausen believes the determination of these few founders will pay off.  

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In last week's episode, Jacquelyn interviewed Jack Lu, co-founder and CEO of the NFT marketplace Magic Eden. This will be his second time on Chain Reaction, but we're excited to see him return as the market has come a long way since his last appearance in August 2022. doing.

Before co-founding Magic Eden in 2021, Lu worked at Google as his product manager and as a consultant at Boston Consulting Group.

Magic Eden originally started as his Solana-based NFT trading platform but has expanded support to other blockchain networks such as Polygon, Ethereum, and Bitcoin. Today, it has grown to be one of the largest NFT marketplaces with over 8,000 collections, nearly $3 billion worth of NFT transactions, and 22 million monthly unique visitors. In June 2022, Magic Eden earned unicorn status, raising $130 million in its Series B round. 

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The Crypto market was down for five consecutive quarters but now with a revelation to the market cryptos have made an uplift in these few days with great benefits.