Coinbase cuts investments in crypo startups
Coinbase cuts investments in crypo startups
According to PitchBook, total cryptocurrency funding was down more than 60% in the third quarter of this year compared to the same period in 2022.
Meanwhile, cryptocurrency exchange Coinbase has become the latest company to reduce its support for digital asset startups as investment sentiment has become decidedly more cautious.
Coinbase Ventures, the investment arm of Coinbase, funded just 11 projects in the third quarter of 2023, down 64.5 percent from the same period last year, according to Crypto.News.
Another crypto exchange, Kraken, also cut its financial support for startups through its Kraken Ventures division by 50 percent in the third quarter of 2023. However, Binance's venture capital arm, Binance Labs, increased its investment activity by 6% to 16 deals in the same period.
Robert Le, a crypto analyst at PitchBook, explained that the decrease in startup funding is mainly due to companies allocating all their funds to their core businesses.
Coinbase said that they have not stopped supporting cryptocurrency startups, but have become more detailed in their approach to funding foreign projects, while intending to invest as little as possible in projects created by U.S. companies.
This is due to the fact that the regulation adopted in the United States negatively affects the trend of cryptocurrency development in the country.
Read also: Binance is entering the crypto market in Thailand.
