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Bitcoin Halving and Market Optimism Drive Millions to Cryptocurrency Startups

TokenTrends Staff

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Bitcoin Halving and Market Optimism Drive Millions to Cryptocurrency Startups

BANGKOK, THAILAND – MAY 14: A woman poses with a Bitcoin mascot during the Thailand Crypto Expo 2022… [+] on May 14, 2022 in Bangkok, Thailand. (Photo by Lauren DeCicca/Getty Images)

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The cryptocurrency and blockchain space is experiencing a resurgence in venture capital funding, with $2.52 billion raised in the first quarter of 2024 alone. This represents a 25% increase from the previous quarter and a significant shift in sentiment from the company’s challenging fundraising environment. last two years. Like Bitcoin
Bitcoin
silently divided in half on April 19, 2024 and regulatory victories continue to increase confidence, investors are calmly pouring money into promising crypto startups.

Crypto Resurgence Factors

The renewed enthusiasm in the crypto venture scene can be attributed to several factors. Legal victories for Ripple – “the judge ruled that Ripple Labs did not violate federal securities law by offering its XRP
XRP
token on public exchanges – undermining an important argument made by the Securities and Exchange Commission” – and Shades of Gray in 2023 have provided a more favorable regulatory environment, while growing demand for DeFi (decentralized finance) on platforms like Solana
Solana
are attracting the attention of investors.

Furthermore, the resilience of the crypto industry in the face of major setbacks – such as the collapse of LUNA
Earth
BlockFi and FTX – have demonstrated the staying power of the industry.

Crypto market momentum

Crypto startups are witnessing an increase in deal flow across multiple sectors, including the growth of layer 2 DeFi, SocialFi, and Bitcoin. Venture capitalists are struggling to keep up with the pace of new businesses, with some companies reporting a 10-20% increase in weekly deal flow compared to the previous quarter, according to TechCrunch. The intersection between cryptography and AI (artificial intelligence) is also gaining traction, with modular, AI-integrated blockchains such as 0G Laboratories It is Io.net secure substantial funding to promote their innovative platforms.

I contacted Garrison Yang, director of marketing at Io.net to report your opinion. He shared: “The convergence of blockchain technology with AI is an innovation that spurs transformative change toward smarter, more autonomous systems. This merger is enabling new capabilities, where smart contracts can evolve from static rules to active structures that intelligently respond to real-time data and changes, driving efficiency and scalability across industries.”

The competitive landscape among venture capitalists has created a founder-friendly market, with investors often flipping their equity to secure allocations in oversubscribed rounds. The trend is particularly noticeable in sectors with technological intersections, such as cryptocurrency mining. BlockDAGan emerging player in the blockchain arena, recently raised an impressive $21 million during the first 20 days of its ongoing funding round.

I reached out to Charlie Lee, a member of the BlockDAG Advisory Board, about the growth of the industry. He stated: “The significant investment in our early stages reflects broader market enthusiasm for innovative crypto mining solutions, which continue to drive scalability and efficiency in blockchain technologies.”

This capital injection signifies robust confidence in BlockDAG’s unique position in the evolving landscape of blockchain and its applications.

Revival of IDOs

Companies are once again exploring token issuance as a means of fundraising, marking a shift from the post-Terra/LUNA collapse era when most early deals were financed through traditional equity instruments. Growing interest in IDOs (initial DEX offerings) and similar models is driving the trend, as these platforms offer immediate liquidity and a broader investor base without the intermediation of traditional financial structures.

While some venture capitalists remain cautious about the long-term performance of these tokens, the market is witnessing an increase in experimentation with tokenomic models. According to TokenMindsThis resurgence of token-based fundraising reflects a significant evolution from previous fundraising methods, emphasizing the need for strategic tokenomics and community engagement to ensure success and sustainability.

Cautious future pace

The crypto risk space is expected to continue its upward trajectory throughout the remainder of 2024. The Bitcoin halving, which will happen again in 2028, has generated a mix of uncertainty and optimism. Historical data suggests that previous halving events have boosted the price of bitcoin, but the future remains uncertain. However, many venture capital investors are optimistic about the next three quarters, anticipating positive gains in financial markets during the election year and improvements in the macro environment.

Regulatory developments remain an unforeseen event in the crypto industry, with the potential to catalyze further growth or impede progress. Positive progress on the regulatory front, coupled with real momentum up the chain, institutional-based product launches and an improved macroeconomic environment, could lead to “frantic levels of deployment,” according to industry experts.

As the crypto industry moves beyond FTX’s shadow, LPs (limited partners) are warming up to the space once again. However, some LPs are differentiating between ‘crypto’ and ‘crypto venture’, potentially leading to a focus on exposure to Bitcoin rather than broader crypto investments. Traditional venture capital firms and crossover funds are with caution re-entering the market, and its increased participation could further fuel the froth of the risky crypto sector.

To recap, the world of crypto startups is experiencing a remarkable resurgence, with millions of dollars being invested in promising startups. Bitcoin halving, regulatory victories and growing investor confidence are fueling market optimism. As venture capital firms raise new funds and accelerate implementations, the industry is poised for significant growth in the coming quarters. While challenges and uncertainties remain, the crypto industry’s resilience and innovation continue to attract investors looking to capitalize on the next wave of technological disruption.

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We are the editorial team of TokenTrends, where seriousness meets clarity in cryptocurrency analysis. With a robust team of finance and blockchain technology experts, we are dedicated to meticulously exploring complex crypto markets with detailed assessments and an unbiased approach. Our mission is to democratize access to knowledge of emerging financial technologies, ensuring they are understandable and accessible to all. In every article on TokenTrends, we strive to provide content that not only educates, but also empowers our readers, facilitating their integration into the financial digital age.

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Bitcoin

RIOT, MARA and CLSK shares at risk

TokenTrends Staff

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Bitcoin price nears key support: RIOT, MARA, and CLSK stocks at risk

Bitcoin (BTC) Mining stocks like Riot Platforms (RIOT), Marathon Digital (MARA) and CleanSpark (CLSK) retreated in pre-market trading as BTC retreated.

RIOT, MARA and CLSK all fell more than 2%, while other crypto-related stocks such as MicroStrategy (MSTR) and Coinbase (COIN) fell 1.5%.

Bitcoin sell-off continues

Crypto-linked stocks retreated as Bitcoin resumed its downtrend on Wednesday. After rising to $63,750 on Monday, BTC is hovering at $60,0000 and it is unclear whether it will recover.

More importantly, Bitcoin is dangerously close to the crucial support at $58,273, which is the 200-day Exponential Moving Average (EMA). The next support level for Bitcoin is $56,426, representing its lowest level in May.

Bitcoin Price Chart

If Bitcoin drops below this price, it will be a sign that the bears have prevailed, which could take it to the $50,000 level, if not below.

This decline happened after a whale deposited nearly 2,000 Bitcoins to Binance in two separate transactions. While this isn’t always the case, deposits to exchanges often happen when holders are exiting their positions.

The whales’ action coincided with a period in which the German government continues to sell off its Bitcoin holdings. It transferred $52 million worth of coins to exchanges on Tuesday.

As a result, data from CoinGlass shows that the volume of Bitcoin balances on exchanges has started to increase. The volume rose to 2.49 million on Tuesday, from last month’s low of 2.47 million.

Bitcoin Balances

Bitcoin balances on exchanges

Bitcoin Mining Companies at Risk

If the Bitcoin sell-off continues, it will put Bitcoin mining companies like Marathon, CleanSpark, and Riot Platforms at risk. These companies have tended to have a close correlation with Bitcoin in the past.

This drop is happening a few months after the halving event, reducing the amount of Bitcoins that miners receive.

To compensate for this drop, most of these companies have added their mining equipment. CleanSpark has reached a hash rate of 20 EH/swhich helped her mine 445 coins in June after mining 417 coins the previous month. She did this after purchasing 5 mining sites in Georgia.

Digital Marathon mined 590 coins in June, down 40% from the same month in 2023 and flat from May.

Riot Platforms, on the other hand, focused on acquiring Bitfarms, a company that mined 189 coins in June.

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Michael Saylor Issues Statement on Bitcoin Amid Crypto Market Sell-Off by U.Today

TokenTrends Staff

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Michael Saylor issues statement on Bitcoin amid crypto market sell-off

U.Today – Amid an ongoing sell-off in the cryptocurrency market, Michael Saylor, a prominent advocate and president of MicroStrategy, made a statement on X (Twitter) that reverberated across the crypto space: “Just Bitcoin.”

This two-word tweet comes as the cryptocurrency market faces significant sell-offs as the price of Bitcoin plummets.

Bitcoin, the largest cryptocurrency by market value, began its decline in Tuesday’s trading session, hitting $63,223 at one point before falling further.

Losses deepened on Wednesday as investors considered remarks from Fed Chair Jerome Powell, with Bitcoin hitting intraday lows of $59,509. At the time of writing, BTC is down 2.85% over the past 24 hours to $60,274.

According to data from CoinGlass, the sell-off has resulted in a significant amount of cryptocurrencies being liquidated in the past 24 hours, totaling over $166 million. However, this has not deterred Saylor’s confidence in Bitcoin, as he reiterates his longing for the crypto asset in his tweet.

Cryptocurrency market crashes

Cryptocurrencies fell on Tuesday after Fed Chairman Jerome Powell said the central bank needs to see more progress on inflation before cutting interest rates, which are now at 5.25%-5.50%. Powell revealed at a monetary symposium in Sintra, Portugal, that the United States is moving closer to a disinflationary path.

“We want to be more confident that inflation is moving sustainably downward toward 2% before we begin the process of tapering or easing policy,” Powell said.

Market losses deepened after Wednesday’s economic releases that indicated the labor market is cooling. Recent data showed weaker-than-expected private payroll growth in June, but weekly jobless claims were higher than economists had forecast. The latest figures come ahead of the highly anticipated June nonfarm payrolls report on Friday.

As the cryptocurrency market goes through a period of uncertainty, the coming days and weeks will be crucial in determining the direction of BTC’s price.

This article was originally published on U.Today



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Bitcoin and Ethereum in GTA 6? Still rumors — for now

TokenTrends Staff

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Bitcoin and Ethereum in GTA 6? Still rumors — for now

Rumors that the long-awaited Grand Theft Auto 6 will use cryptocurrency that has been circulating for more than a year now—and they’re spinning again.

On Wednesday, a pseudonymous Crypto Twitter influencer named Gordon — apparently named after Gordon Gekko from the iconic 1987 film “Wall Street” —shared to his nearly 500,000 followers that “GTA 6 will allow cryptocurrency payments” and that “so far only Bitcoin, EthereumIt is USDT [are] confirmed.”

But in reality, no cryptocurrency has been confirmed for Grand Theft Auto 6, despite ongoing chatter about the rumors. Rockstar Games and parent company Take-Two have made no such announcements this week on the subject, nor have they made any prior announcements, and official trailers and announcements have made no mention of cryptocurrency being included.

However, the tweet — which also included a fake trailer for the game — quickly went viral, with over 500,000 views as of this writing in a matter of hours. When Twitter users asked Gordon for his sources, he would jokingly respond that his “uncle works there” or say that previous reports on the matter were “old” at this point.

But really, nothing has changed since then. DecipherGG’s reported in previous rumors in May 2023, not even since the first official trailer — which initially leaked with “BUY BTC” stamped on itApparently by the leaker in question—premiered last December.

DecipherGG reached out to Rockstar Games for comment but did not receive an immediate response.

Could Grand Theft Auto 6 implement a crypto element when it releases in 2025? It’s certainly possible, and if so, it would be a transformative moment for cryptocurrency adoption by the traditional gaming industry.

Take-Two Interactive has explored the space before, acquiring casual gaming giant Zynga in early 2022, when Take-Two founder and CEO Strauss Zelnick suggested there were “Web3 opportunities” that they could explore better as a team. Zynga has launched its first blockchain game on Ethereum, called Sugartownbut Take-Two has yet to get involved with other brands.

Rockstar Games, on the other hand, prohibited the use of cryptocurrency or NFTs on player-run Grand Theft Auto 5 servers in late 2022, following a rise in the use of NFTs to represent unique player-owned assets on modded game servers.

And given Grand Theft Auto’s satirical tone, the game may be more likely to criticize cryptocurrency and poke fun at caricatures of crypto fans and NFTs, for example, rather than trying to launch its own on-chain currency. But that’s all speculation at this point, as there are relatively few official details about GTA 6.

For now, at least, don’t believe the hype. While Rockstar Games hasn’t officially closed the door on cryptocurrency usage in Grand Theft Auto 6, it hasn’t confirmed anything about it either. However, it’s sure to remain a hot topic in the long run leading up to release, which is currently scheduled for fall 2025.

Edited by Ryan Ozawa.

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Crypto President Trump’s ‘Lesser’ Regulation Will Bless Coinbase’s Bitcoin Leverage, Expert Says – Coinbase Glb (NASDAQ:COIN)

TokenTrends Staff

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Crypto President Trump's 'Lesser' Regulation Will Bless Coinbase's Bitcoin Leverage, Expert Says - Coinbase Glb (NASDAQ:COIN)

Chris SenyekChief Investment Strategist at Wolfe Researchrecently expressed his opinion on the potential impact of a Donald Trump win the 2024 elections in the cryptocurrency market.

What happened: Senyek suggested that a Trump presidency could ease cryptocurrency regulations, benefiting companies like Coinbase Global Inc. COIN due to its importance Bitcoin BTC/USD Leverage.

“Trump would be less harsh on crypto regulation, and Coinbase would be a big beneficiary of that given its influence on bitcoin,” Senyek said during CNBC’s “Last Call” on Tuesday.

See too: Enhance Your Retirement Portfolio: The Benefits of Adding Cryptocurrency

Why does this matter?:Senyek’s comments come in the context of the former president Donald Trump‘s reported plans to participate at the Bitcoin 2024 convention, which could reinforce his image as a “Crypto President”.

Trump’s potential participation in the Bitcoin 2024 convention, a major event on the cryptocurrency calendar, could have significant implications for the industry.

Pratik KalaHead of Research in DigitalX Limitedhe has predicted a Trump victory in the upcoming elections, but warns that immediate cryptocurrency-friendly regulations may not be a priority.

A recent report by 10x Search explore the recent rise in Bitcoin price and its potential connection to Trump’s strong position in the 2024 election race. The report, titled “Is the Bitcoin Trump Pump Sustainable?”, highlights a 4% spike in Bitcoin’s price following the news that the president Joe Biden will remain in the race despite a poor performance in the presidential debate.

Price Action: At the time of writing, Bitcoin was trading 2.10% lower at $60,860.66, according to Benzinga Pro.

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Image created using photos from Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari

News and market data brought to you by Benzinga’s APIs

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