Bloomberg reported, citing data from the research firm PitchBook, that funding for private crypto firms in the second quarter fell to its lowest level in a year.
“The crypto industry now mirrors the sluggish activity among tech and venture capital investors,” Bloomberg reported.
“Everyone is really hesitant on closing deals right now,”
While in the crypto startup sector, David Pakman – a managing partner at the crypto VC firm CoinFund – told Bloomberg that deals have fallen apart, and investors have revoked written offers in recent weeks.
Bloomberg added that more layoffs are likely, and valuations will decrease further. It added that the troubled crypto lender BlockFi Inc. was already looking to raise money at a reduced valuation of $1 billion.