TechFlow news, on September 9, Frank Chaparro, Special Projects Director at The Block, and Laura Vidiella of MNNC Group published a joint opinion piece urging investors to focus on the long-term development of the crypto industry. Although the cryptocurrency market has performed poorly in September 2024 and recent employment reports have dampened market sentiment, from a macro perspective, the industry continues to develop steadily. Laura recently attended Korea Blockchain Week and moderated a panel discussion on the evolution of liquidity funds and venture capital funds.
Statistics show that the number of global funds focused on crypto investments has surged from around 50 in 2018 to over 1,150 today. In comparison, there are approximately 4,000 registered hedge funds in the United States and about 30,000 globally. In terms of fundraising, the crypto industry raised more than $72 billion between 2018 and 2023, compared to over $600 billion raised by traditional U.S. venture capital during the same period.
Although the approval of spot Bitcoin ETFs at the beginning of 2024 brought high expectations, this year is more likely to be a transitional period. This cycle should not be simply compared with previous cycles, as the industry landscape has changed dramatically. Investors feeling discouraged might consider taking a break or examining industry trends from a longer-term perspective, which could yield better insights.
