The race to fund crypto’s future sure is expensive  – TechCrunch

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Welcome to the weekend! We did it. Barely, I think, given how tired everyone looks on the phone and on Twitter. But we beat our workdays identically, which means we can relax and enjoy ourselves for a minute. Yes, we are talking about encryption today. Rejoice!

The race to fund the future of cryptocurrency is certainly costly

I am impressed with the pace at which Coinbase has invested capital in other companies in the larger blockchain market. It’s a smart move, as the US public company can cash out relatively small amounts (when stacked alongside its revenue base) and buy ownership and access to information in startups, providing them with early warning data regarding what has emerged. Given that Coinbase is a clear presence – and gatekeeper, to some extent – in the crypto market, its investments make sense.

But there is investment, and there investment. And the newly announced FTX fund appears to be something more aggressive than what Coinbase has been able to manage, despite the very fast tempo of deals.

The total cryptocurrency for the FTX fund will be about two billion dollars, and it can be spent per interview Only this year. This is a wild investment pace, perhaps reminiscent of how quickly a16z put its last $2.2 billion crypto fund into action.

some questions:

  1. Why does the cryptocurrency market need so much money when its user base is so small compared to the larger internet?
  2. Why do we use so many securities to fund cryptocurrencies?

These are interrelated questions. It just sums up a little confusion for me as to why it is so difficult to build useful things in the cryptocurrency market. Coinbase and FTX are on the fringes of the crypto world, moving money back and forth from the traditional economy and what its future could be. They are investing smart, but how much money they are willing to invest, along with what traditional venture capitalists are also attacking in blockchain startups, have I been a bit confused – what is it all spending?

The two main blocks were created, and it wasn’t new (Ethereum was contemplated in 2013 and launched in 2015; the Bitcoin white paper appeared in 2008); Stable coins exist and have a number of good and stable players; A large number of capital went to the NFT markets and a few crypto games. Some have even built humble player bases. But it does seem a little focused when we compare the amount of money pouring into the space with what we can see in terms of usable outcomes.

The institutional investor reported that a total of $32.8 billion was invested in “crypto and blockchain technology companies” last year. There will probably be a lot of stuff created with this money coming up soon that will blow us away, but now north of a decade after Bitcoin said, “Hey, world,” I still don’t use any blockchain-powered apps or services today. Unless I mess around with one part of the crypto world for research purposes, of course.

And I spend more time online than I want to admit! Perhaps the new FTX fund will bring to market a mass market blockchain product that is not just another avenue for speculation. Let’s wait and see, I suppose.

Alex

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