- In a report from Bloomberg News citing PitchBook Data, a providers of financial software and data, the whopping sum is almost four times the $ 8 billion that investors provided to digital money companies in 2018
- The emergence of cryptocurrency in 2021 has resulted in many companies attracting investors who are seeking the next big thing
- With a $ 1 billion funding round in July, FTX became a major competitor to other major crypto exchanges such as Binance and Coinbase.
According to Bloomberg News, which cited figures from PitchBook Data, a financial software and data provider, the whopping sum is nearly four times the $ 8 billion that investors gave to companies in the digital money space in 2018. And about $ 7.2 billion of the $ 30 billion pumped into the crypto space in 2021 came from American investors.
Since cryptocurrency went mainstream in 2021, many companies have successfully attracted investors looking for the next big thing. Crypto exchanges, digital collectibles startups, and crypto-powered games have been areas of the industry that have generated high-profile multi-million dollar and even billion-dollar investments. The FTX crypto derivatives exchange raised $ 1 billion in a July round of funding, making the two-year-old company a major competitor to other major crypto exchanges such as Coinbase and Binance.
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Investor money has also hit the previously niche sectors of metaverse platforms and play-to-earn crypto-enabled games this year, in which users can earn cryptocurrency per game. Sky Mavis, the creator of Axie Infinity, raised $ 150 million at a $ 3 billion valuation in October.
The growing interest in the metaverse, which is the collective name for a piece of the Internet made up of multiple platforms that include digital entertainment and business opportunity, has also spurred multimillion-dollar investment in this space. The Sandbox Metaverse raised $ 93 million in a round led by SoftBank in early November.
Within the NFT space, artists, Fortune 500 companies, and public figures such as Quentin Tarantino have taken advantage of new technology to sell digital art or other collectibles for tens of millions of dollars, which has helped drive investor interest in third-party exchanges that arbitrate such sales. OpenSea, the largest NFT exchange, raised $ 100 million in a July funding round led by Andreessen Horowitz, which valued it at $ 1.5 billion.