Crypto start-ups: private investments run against the market flow

The cool winds of the crypto winter prove that Bitcoin is not a refuge, as some have hoped. The decline in cryptocurrency prices is parallel to the sale of technology stocks. According to Arcane Research, the 60-day correlation between Bitcoin and the Nasdaq Composite Index is on an all-time high. Nevertheless, crypto start-ups are pending for more funds.

rising interest rates and fear of recession have increased the demand for digital assets. Overall, the value of the crypto market has halved since the climax last November, according to the data aggregator Coingecko. Fraud and the collapse of the allegedly stable coin Terra have also weakened the trust of the investors. Krypto is still difficult to use, although payment companies like PayPal offer it as an option.

Private Fundraiser, however, are still looking for investments. According to CB Insights, there are now 62 cryptofocussed unicises worth 1 billion USD or more, compared to 49 at the end of 2021. This week, the famous risk capital company Andreessen Horowitz from the Silicon Valley announced that they have closed a new crypto fund worth $ 4.5 billion. Money can be used for start-ups or tokens. No matter that the prices crash, says A16Z (as Andreessen is called) says that swings produce innovations.

free flowing private financing can disguise the value. Take a look at the recent investment in a start-up filled with keywords that works on "climate solutions, powered by blockchain" by Weork founder Adam Neumann.

Neumann is known for leading Weworks spectacular failure of the IPO in 2019, which has shrunk to $ $ $ 8 billion from USD $ 47 billion.

Flowcarbon, the start-up he co-founded, will convert emission certificates sold to companies into crypto tokens. It is said that the recording of transactions in blockchain will increase transparency and the tokenization of credits will enable easy trading with them. But there will be no problems with the provision of loans that are associated with low quality projects in an unregulated market. Nevertheless, Flowcarbon collected $ 70 million. The crypto winter has not frozen every part of the market.