Crypto Storm #106: What happened to investments in crypto protocols?

Check out this week’s edition of the Crypto Storm podcast

In this edition of the Crypto Storm podcast (also available in video ????), André Franco, Lucca Benedetti and Valter Alencar talk about investments in crypto protocols.

Unlike the world of traditional finance, where there are several rounds of fundraising, the crypto world presents a mix of options, which may originate in the private investment market, but can also count on the support of the protocol community.

André Franco comments on data from Dove Metrics that show comparisons between investments made in the second and third quarters of this year. According to the data presented, the main sector that experienced a downturn was decentralized finance (DeFi, the acronym in English).

In the second quarter of 2021, DeFi had 35% of the crypto sector’s investments, but in the following quarter that percentage dropped to 25%.

The presenter points out that the investment difference was allocated to non-fungible tokens (NFTs, the acronym in English) and the area of crypto infrastructure.

However, Lucca indicates that, although the percentage of investments in DeFi has decreased, the volume present in the sector has remained the same. He also recalls the 2017 cycle, in which the dispute was linked to the lowest price and the highest speed.

However, currently, users are more interested in proposals that are building greater value, such as DeFi, games in blockchain (such as Axie Infinity or Star Atlas), digital collectibles, among others.

Valter, on the other hand, complements the debate by pointing to the intersectionality of the crypto sector, since NFTs, for example, can be used as collateral, in addition to being integrated into games, and these, in turn, are part of blockchain platforms.

The presenter indicates that this is happening, in large part, due to the entry of new capital, coming from large companies, such as Fantom, for example.

Next, presenters comment on the controversial role of the US Securities and Exchange Commission (SEC), pointing out that the regulator’s stance prevents non-institutional investors from participating in crypto gains, claiming to be protecting them.

Furthermore, they point out how the posture of US regulators makes it appear not that they are protecting retail investors, but rather that they don’t like the crypto industry.

Press play to check out this week’s edition, to find out how investments in crypto protocols and other industry sectors remain, as well as how US regulation can interfere with crypto in the United States and, consequently, in the world.

???? Mining of the Week

→ Report: Dove Metrics

How do investments in crypto protocols happen? How can US regulators impact the crypto industry at home and around the world? Check it out now to learn more.