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- 1 Blockchain.com reportedly had a valuation of a whopping $14 Billion during the funding round that took place in early 2022.
- 2 Apart from Kingsway, the other participants in the funding round include Coinbase Ventures, Lakestar, Vaillie Gifford, and several others.
Blockchain.com, one of the prominent crypto exchange firms and wallet provider firms, recently closed a funding round of over $100 Million. The funding round was led by British virtual capital firm Kingsway along with several other participants. The crypto firm gained attention for a drop in valuation amid the recent funding round.
Bloomberg reported that Blockchain.com raised $110 Million worth of investments in a Series E funding round. The funding round took place after more than a year and a lot has changed since then for the company as well as for the broader crypto industry. One of the most talked about instances of the recent funding round was the company’s valuation.
Blockchain.com reportedly had a valuation of a whopping $14 Billion during the funding round that took place in early 2022. However, until the recent funding round, the valuation was cut in half from its peak.
Apart from Kingsway, the other participants in the funding round include the existing investors in Blockchain.com. These firms were Coinbase Ventures, Lakestar, Vaillie Gifford, and several others.
Cryptocurrency space became the new arena for virtual capital investments after the sector’s growth in the past few years. The funding picked up pace during the bullish phase while slowing down during crypto winter. The pattern repeated following the recent crypto winter where funding rounds saw a drop in number and investments.
Crypto Winter De-Escalated Valuation
The drop in the valuation of Blockchain.com took place in the wake of the recent crypto winter triggered after Do Kwon’s Terra (LUNA) network collapsed in May last year. The collapse made a huge hole and turned out to be one of the disastrous events for the crypto industry.
Billions of dollars were wiped out within days after the incident and several other billions when the impact hit the companies associated with the Terra network. The ripple effect resulted in the shutdown of many prominent names in the industry which were sitting on a huge pile of capital and it was blown off all of a sudden.
The funding in crypto sectors also froze due to the crypto winter. But it also picks up pace with things reaching normalcy. Blockchain.com funding despite the huge drop in funding showcases the optimism of investors in the burgeoning asset class despite the recent worse phase.
One of the major reasons behind the optimism could be due to discussions around the Bitcoin exchange traded-fund (ETF) getting regulatory approvals. Many leading traditional financial firms including BlackRock, Fidelity Investments, Valkyrie, and several others filed for spot Bitcoin ETFs with the Securities and Exchange Commission (SEC).
The crypto community is assured that the spot BTC ETF could get approval anytime soon and hence, it will bring the crypto asset into the mainstream. The limelight will lure more people towards it and hence capital inflow and price hike in the contingency.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
