Inflated valuations for crypto businesses have raised the bar for small investors to participate in the ongoing innovation.
As cryptocurrency continues to take over mainstream finance, formerly cautious investors across the globe are rethinking their stance of counting crypto as a bad investment. This change of heart has led to a higher market valuation of crypto businesses due to increased funding from goliath investors.
Citing this trend, PricewaterhouseCoopers crypto leader Henri Arslanian claimed that larger players from venture capital, private equity and pension funds are outplaying smaller boutique firms and family offices from participating in the latest innovations around crypto.
Arslanian sided with smaller VC firms as he shared an example stating that a deal worth $10 million is now seeing “large VCs come in and put a bid in for a higher valuation.” He opined:
“This is happening a lot with very early-stage companies, say, $5 million to $20 million — the prices are being inflated.”
As the crypto ecosystem continues to redefine the future of the asset class, Arslanian highlighted the recently doubled volume of crypto mergers and acquisitions. He underscored how this year, crypto businesses were able to raise 2020’s M&A value of $3 billion in just three months.
“If your minimum ticket size is around $50 million, there aren’t that many companies that have that status yet,” Arslanian explained, continuing, “If you’re a large pension fund and you decided to make a crypto allocation, there are no more than two dozen companies around the world that are investable, looking for capital and could absorb $100 million.”
Along similar lines, CryptoPumpNews reported on FTX’s recent record-breaking funding round of $900 million. The funding, which resulted in FTX’s valuation growing from $1.2 billion to $18 billion, saw the involvement of large VC firms including Softbank, Sequoia Capital, Coinbase Ventures, Multicoin, VanEck and Paul Tudor Jones.
Related: Multiverse secures a $15M investment from Samsung Next, leading blockchain VCs
Cointelegraph also reported on investments from some of blockchain’s biggest VCs toward Multiverse Labs, a company built to fund early-stage blockchain and AI initiatives. Some of the prominent investors include Samsung Next, Huobi Ventures and Arrington XRP Capital.
The resultant valuation for Multiverse grew to $250 million, with a greater focus on engineering, research and marketing in addition to expansion across Europe and Southeast Asia.
Every trader who trades cryptocurrency on the Binance exchange wants to know about the upcoming pumping in the value of coins in order to make huge profits in a short period of time.
This article contains instructions on how to find out when and which coin will participate in the next “Pump”. Every day, the community on Telegram channel Crypto Pump Signals for Binance publishes 3-4 free signals about the upcoming “Pump” and reports on successful “Pumps” which have been successfully completed by the organizers of the VIP community.
These trading signals help earn from 5% to 45% profit in just a few hours after purchasing the coins published on the Telegram channel “Crypto Pump Signals for Binance”. Are you already making a profit using these trading signals? If not, then try it! We wish you good luck in trading cryptocurrency and wish to receive the same profit as VIP users of the Crypto Pump Signals for Binance channel.