2019-7-19 23:49 |
Bitcoin and the entire crypto markets have been incurring significant volatility throughout the course of 2019, most of which has actually been bullish.
Despite this, newly released data suggests that funding for blockchain and crypto companies has dived over the past year, which may be exasperated in the coming months and years as the United States’ government begins implementing “very strong” regulations on the nascent markets.
Funding for Crypto and Blockchain Companies Expected to Plummet 60% in 2019According to a recently released research report from CB Insights, 2018 was a record year for fundraising for blockchain startups, which pulled a total of $4.1 billion in the 12-month period.
So far in 2019, blockchain and crypto startups have only received a mere $784 million through a total of 227 deals. In the next five months, CB Insights predicts that companies will have slightly better success fundraising, putting the final fundraising amount for 2019 at $1.6 billion.
The report also notes that corporations are beginning to invest less in companies that were previously drumming up significant interest, and that more mature startups are actually facing a larger fundraising dilemma than their newer counterparts.
Could Incoming Regulatory Crackdown Further Hamper Fundraising Efforts?Throughout the past couple of weeks, the world has gained significant insight into how many prominent politicians feel about Bitcoin and the aggregated crypto markets, and unsurprisingly, they aren’t expressing much enthusiasm about the nascent markets.
Shortly after President Donald Trump told the world in a tweet that he is “not a fan” of Bitcoin and other cryptocurrencies, the US Treasury Secretary, Steven Mnuchin, held a press conference on the same topic, telling reporters that the lack of regulations surrounding the crypto markets is a “national security” issue.
Now, during a recent interview with CNBC, Mnuchin explained that the government will begin policing cryptocurrencies with “very, very strong” regulations so that they don’t bring instability to the traditional financial system.
“I want to be careful that anybody who’s using bitcoin — regardless of what the price is — is using it for proper purposes and not illicit purposes… And there are billions of dollars of transactions going on in bitcoin and other cryptocurrencies for illicit purposes,” he added during the interview.
Only time will tell as to whether or not the imminent regulatory policies from the US government will hamper innovation and growth in the crypto and blockchain industry, but it is likely that fears about this clampdown will slow fundraising efforts in the coming months and years.
The post Funding for Crypto and Blockchain Companies Plummets as Regulatory Concerns Grow appeared first on Ethereum World News.
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