• Big companies are less interested in the blockchain and cryptocurrency industry.
  • The investments in the crypto space may decrease significantly.

     The interest towards Bitcoin and cryptocurrencies is definitely on the rise; however, venture capitalists and investors seem to be less fascinated by the industry, according to the recent research conducted by CB Insights. The company forecasts that investments in the blockchain and crypto industry will fall by 61% in 2019.

“VC investment into space has seriously declined in 2019. At current run rates, 2019 will only see $1.6B invested across 454 deals, a significant decline from the $4.1B invested in blockchain last year,” the report says.

The experts also noticed that large corporations had been losing interest in blockchain. There were only 96 blockchain partnership deals concluded in the first half of 2019 against 302 in 2018. If the trend remains the same, by the end of the year the number of deals will be 32% lower on an annual basis.

Moreover, Reuters reports that 12 out of 33 projects that attracted investments from large corporations or banks are still in a test mode. Those that have been launched into commercial operation have yet to win wide acceptance. 

CB Insights believes that the research results may signal the shift of interest away from blockchain and cryptocurrencies.

Meanwhile, since 2014, over 40% of investment deals in the blockchain and cryptocurrency industry was concluded in the US. The second place goes to China, with 15% of the total number of deals.

Digital Currency Group, Boost VS, Blockchain Capital, Pantera Capital and Fenbushi Capital were among the most active investors in the blockchain and cryptocurrency industry.
 
Earlier this year, CB Insights found out that over 75% of dApps transactions driven by bots. Read more details here.

(Excerpt) Read more Here | 2019-07-19 04:00:00
Image credit: source

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