Crypto exchange Crypto.com invests heavily

The crypto trading exchange Crypto.com recently significantly increased the budget of its investment company to support even more start-ups from the blockchain sector. An investigation shows that this is not an isolated case.

Crypto.com expands its offering

Trading in cryptocurrencies is one of the current trends in the financial world – and a competitive field. With the prospect of the Internet concept Web3, companies from the sector are already positioning themselves to participate in the next big boom. This is also the case with crypto exchanges such as Crypto.com: the platform advertises that it is the “world’s fastest growing crypto app” and, according to the company, serves more than ten million users. More than 250 cryptocurrencies can be bought and sold in the application, and the creators keep announcing new additions. Trading with NFTs has also been taken up in the meantime. Since October 2021, US actor Matt Damon has also been promoting Crypto.com. Now there is more news from the stock exchange.

Crypto fund significantly increased

As Crypto.com Capital, the investment arm of the trading platform, recently announced in a press release, Jon Russell has been hired as a new partner of the company’s venture fund. The former technology journalist is now co-managing the fund, which was only launched in March 2021 with a total volume of more than 200 million US dollars and is fully financed by the company’s balance sheet, according to the company. Already at the start, the goal was to support young start-ups in the industry. With Russell’s hiring, the volume of the fund has now been increased to 500 million US dollars, as “TechCrunch” reports. With this step, Crypto.com hopes to raise public awareness of crypto trading and reach one billion users.

Focus on Metaverse, Blockchain, NFTs and DeFi

While the fund, led by Crypto.com co-founder Bobby Bao, invests independently, partner companies can benefit from expertise and various advantages in the process, according to the investment department. According to the press release, it is looking for companies that are active in the areas of the metaverse, blockchain gaming, NFTs or decentralised finance. So far, more than 20 collaborations have been concluded, including with companies such as blockchain operator Efinity, avatar provider Genies, DeFi wallet DeBank, Metaverse developer Alethea AI, NFT platform YGG SEA and software developer Matter Labs. Series A funding rounds would typically support the upstart companies with up to US$10 million. “Crypto.com Capital is less than a year old, but we are already working hand-in-hand with dozens of world-class founders, and we want to find more,” Bao said, according to the announcement. “The Crypto.com Capital fund offers a unique advantage to help the world’s best Web3 founders and start-ups realise their potential, and I can’t wait to do my part,” Russell is also quoted as saying.

Investments to strengthen the crypto industry

The fund’s expansion is primarily intended to fuel the crypto industry’s growth, according to the investment firm’s new partner. “If you’re in the industry, it’s in your interest to help companies grow in the ecosystem, and the ecosystem itself grow,” Russell tells TechCrunch. However, despite being included in the fund, the young companies are not obliged to approach the crypto exchange with special conditions or offer their tokens there. While there surely are some black sheep in the industry, he said the potential of cryptocurrencies cannot be dismissed. “There is certainly a lot of hype and hot air in the crypto and Web3 industry, but it is impossible to ignore the talent that is pouring into the industry,” Russell continued. Beyond that, however, he said it is also essential to keep a close eye on industry trends and react to new developments.

More investment than ever in crypto start-ups

However, Crypto.com is not the only one investing in start-ups in the sector. According to a report by investment company Galaxy Digital, funding activity for crypto start-ups is at a record high. In 2021, for example, more than 33 billion US dollars in venture capital had flowed into young companies in the crypto trading and web3 sectors – more than in all previous years combined. “Valuations in the crypto/blockchain space were 141 per cent higher than the rest of the venture capital space in the fourth quarter, underscoring a founder-friendly environment and intense competition among investors to allocate deals,” TechCrunch quotes from the report.

Competitors are also putting up money

And the competition is not sleeping either. Crypto exchange FTX unveiled a two billion US dollar crypto fund just a few days earlier, which includes more than 15 start-ups. And according to TechCrunch, competitors Coinbase and Binance are also to invest in the Web3 sector. However, the start-ups are not only supported by crypto exchanges. The investments come from numerous companies rooted in the industry. According to TechCrunch, the developers of digital assets such as Solana, Avalanche and Polkadot are also pumping money into blockchain start-ups.

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