Crypto.com’s venture arm has adjusted its investment strategy amidst uncertainties surrounding the sustainability of the current valuation surge in the cryptocurrency sector.

Crypto.com Capital, the venture arm of the company with a $500 million fund allocated for startup investments as of January 2022, has been reducing its investment activity over the past 18 months, according to a report by Bloomberg.

Analysts at Dealroom have observed a decline in Crypto.com’s investment activities since the beginning of 2023, with only four deals made compared to 35 in the two years prior.

In a statement to Bloomberg, Crypto.com CEO Kris Marszalek acknowledged the decrease in funding activities, citing that current project valuations are overly generous, and the company aims to maintain a more practical approach. Marszalek mentioned that the venture arm has made around 70 investments so far, without specifying an exact number.

Despite the caution, recent venture capital deals in the industry have still seen substantial amounts raised. For instance, Crypto.com Capital participated in funding Berachain, a blockchain network valued at over $1 billion, which secured $100 million in funding.

Other players in the cryptocurrency market, such as Andreessen Horowitz, have also scaled back their investment activities. The venture capital firm has shifted its focus towards artificial intelligence, temporarily moving away from crypto investments.

For more insights on the latest trends in cryptocurrency investments and market developments, stay updated with Global Crypto News.

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