Crypto Whales Stockpile Crypto

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Crypto Whales Stockpile Crypto

Crypto Whales Are Hoarding Cryptocurrencies!

The cryptocurrency sector as a whole is going through bleak winter & nothing interesting is happening. However, venture capitalists and whales are still pouring money into digital assets and even the new blockchain startups. In fact, many people are of the view that this current pace of investment will even break last year's record.

During the first half of 2022, venture capitalists invested a total of $17.5 billion (USD) in crypto firms. When we look at last's year investment value of $26.9 billion, this tells us that the investment value for this year may surpass that easily!

According to experts, it seems that the current market conditions have not affected the big-time investors. And this view is true considering how much capital flow is moving into the crypto sector.

VC Funds Showing Strong Interest In Crypto

VC funds which regularly hunt down young companies for investment, seem to be showing a great interest in crypto. Many of them are offering financing facilities to new crypto companies with strong growth prospects.

Although the industry is facing a difficult 6 months or so, it seems that the investors still have strong faith in blockchain technology and cryptocurrencies.

A combination of some flash crashes and difficult macroeconomic conditions has already eaten away 65% of Bitcoin's total market value. On top of that, the total market capitalization in crypto has also dipped below $1 trillion, which raises more red flags.

In the crypto ecosystem, many companies have outright applied for bankruptcy, while many others are struggling for new financing. Recently, the crypto firms such as OpenSea and Coinbase also laid off hundreds of capable workers.

Considering this whole scenario, what's the thing seen by the VCs for their decision to invest in the crypto firms? I personally believe that the technology behind crypto tokens is what's driving investment.

However, there are still some investors who are not so bullish about the crypto sector. Some crypto observers believe that signs of a reversal in crypto started to appear last year. Some say crypto will only go downhill from here.

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