According to Cointelegraph Research , in August 2022, there was $1.36 billion in venture capital investment in the blockchain industry, the lowest level in 12 months and the fourth consecutive month of year-on-year decline in capital inflows. Capital inflows in August fell 31.3% from $1.98 billion in July, and the average capital investment for the 101 deals completed in August was $14.3 million, down 10.1% from July. The data comes from Cointelegraph Research Terminal's venture capital database , which contains comprehensive information on deals, M&A activity, investors, cryptocurrency companies, and funds.
Blockchain industry capital inflows hit 12-month low in August 2022 Source: Cointelegraph Research VC Database
August Funding Focused on Web3, NFTs, and Infrastructure
The three most popular investment categories in August were Web3, infrastructure, and NFT, attracting more than $1.16 billion in funds, accounting for 85.4% of the total capital inflows. Web3 game developer Limit Break raised $200 million. Barca Studios, the Web3 arm of FC Barcelona , has raised $100 million from Chiliz, owner of blockchain-based fan rewards platform Socios. Ready Player Me, a platform that allows people to create metaverse character avatars, raised $56 million in a Series B round led by A16z. Inworld AI, a developer platform for creating artificial intelligence-powered virtual characters, raised $50 million in Series A funding led by Section 32 and Intel Capital.
Industry investment interest ratio in August 2022 Source: Cointelegraph Research VC database
CoinFund remains bullish on Web3 despite poor market conditions
Venture capital firms have also been raising money. Web3 and cryptocurrency-focused venture capital firm CoinFund have launched a new $300 million fund to back early-stage startups, underscoring its bullish belief that Web3 will "go on through all market cycles." With $80 million in funding from the Algorand Foundation and Near, Orange DAO will continue to grow into an investment-focused decentralized autonomous organization backing crypto startups. Meanwhile, Shima Capital launched its first $200 million venture capital fund to back emerging digital asset companies.
Nigeria detains two Binance executives amidst investigations into the exchange's operations, prompting regulatory scrutiny and the halting of peer-to-peer trading. The situation highlights risks for investors and underscores the importance of choosing regulated platforms for cryptocurrency transactions.
WeatherlyBitcoin has surged past $63,000, driven by increased ETF trading and anticipation for the upcoming halving event. This rally has sparked renewed interest in cryptocurrency markets, with potential for further growth as momentum builds.
AnaisThe Islamic Coin project faces challenges in listings due to concerns over its design and potential political implications, highlighting complexities in the cryptocurrency market's regulatory landscape.
AlexAlibaba's EMO revolutionises AI animation, animating static photos into lifelike talking and singing videos. By directly converting audio to video, EMO captures subtle motions and individual facial characteristics with astonishing realism, presenting both innovative opportunities and ethical considerations.
WeatherlyThe Pokémon Company clarified that their new game, Pokémon Trading Card Game Pocket, won't include NFTs, addressing fans' concerns. While NFT integration in gaming faces challenges, the game aims for engaging gameplay and accessible monetisation strategies, prioritising the Pokémon experience.
AnaisEthereum's recent surge above $3,488 on February 28th reflects a broader cryptocurrency market rally. However, the spike in funding rates to 0.07% signals potential risks of overheating and a long squeeze for bullish traders.
WeatherlyJim Cramer's optimistic forecast and growing market anticipation signal potential for Ethereum ETFs, mirroring the impact of Bitcoin ETFs. With upgrades like Cancun and Shapella enhancing Ethereum's capabilities, surpassing previous all-time highs seems within reach, possibly by the third quarter.
AnaisBinance's new listing of Portal's gaming token sparked excitement, leading to a surge in market cap to $425 million. Portal offers cross-chain gaming, allowing easy access to various games and assets, with plans for token staking benefits and further expansion.
JoyHong Kong's Securities and Futures Commission has stopped accepting crypto exchange license applications, with non-compliant exchanges facing closure by 31 May 2024. Licensed operators include OSL Digital Securities and HashKey Exchange, while notable applicants like Bybit and OKX seek approval, though platforms like Coinbase and Kraken are absent.
AnaisOpenAI won a legal battle against Open Artificial Intelligence over the "Open AI" trademark, with a court injunction prohibiting the latter's use of the term. The ruling highlights the importance of protecting intellectual property in the AI industry and raises questions about branding strategies for both companies.
Joy