DFG Founder: Crypto Market Recovery Sparks Increased Investment and Regained Confidence

DFG founder said the recovery of the crypto market has inspired increased investment and renewed confidence. As a new force in the financial industry, the crypto market is gradually gaining more attention and trust. The continued growth of cryptocurrencies such as Bitcoin brings more opportunities and potential to investors. The recovery of the crypto market has also injected new vitality into the development of the industry and laid a solid foundation for future development. The statement of the founder of DFG also further enhanced market confidence and brought more investment and attention to the encryption market.

As the market enters a cryptocurrency bull run, which in turn triggers positive market sentiment, many venture capital investor firms begin to focus on new projects for investment.

After the scandals and FTX debacles of the past few years, the cryptocurrency space seems to be seeing the light now.

According to Shalini Nagarajan of Cryptonews, a recent PitchBook data report showed that the amount of venture capital investment in crypto startups increased by 2.5% in the fourth quarter of 2023, reaching $1.9 billion, which was the second highest since 2022. first quarterly increase.

The crypto market is in the stage of healthy recovery

After the market downturn, signs of market stability have encouraged investment institutions to invest again. Increased interest from institutional investors, rising capital inflows, and rising trading volumes indicate that the crypto market is in a healthy recovery phase. James Wo, founder and CEO of DFG Investments, told Cryptonews.

There is more positive sentiment in the final quarter of 2023, driven by the impending approval of a spot Bitcoin ETF.

James Wo pointed out that in areas where the regulatory framework for cryptocurrency and blockchain projects is clearer and more favorable, venture investors may feel more confident in investing.

For example, regulatory clarity can reduce the legal uncertainty and risks associated with investing in the cryptocurrency space.

Japan encourages local VCs to invest in Web3

The Ministry of Economy, Trade and Industry (METI) revealed that the Japanese cabinet has approved a proposal to allow domestic venture capital firms to invest in Web3 startups. This legal reform will open the door to opportunities for Japanese venture capital firms to participate in virtual currency projects, which were previously only open to international investors.

James Wo explained that the Japanese government has recently taken some initiatives to allow specific venture capital firms to directly invest in cryptocurrency and Web3 startups. This move is expected to boost venture capital investment in Japan's Web3 market.

According to METI, the approved amendments include changes to four key bills. One of the four important bills adopted by the department is the Investment Limited Partnership Agreement Law, Cryptonews’ Jimmy Aki reports.

The increase in VC funding in the crypto space indicates renewed confidence in blockchain technology and the potential of digital assets, explains James Wo.

Recently, AltLayer, a rollups platform focused on blockchain scalability, raised $14.4 million in a strategic funding round. According to AltLayer’s social media post, the round of funding, co-led by Polychain Capital and Hack VC, will be used to expand the company’s team and advance its rollup infrastructure.

Be Cautious

It is always important for all investors to conduct thorough due diligence on new crypto projects and seek transparency.

“It is important for investors and stakeholders to remain cautious and conduct thorough due diligence as the crypto market is known for its volatility and regulatory complexity. The long-term outlook for increased VC funding in the crypto market The impact will depend on a variety of factors, including technological advancements, market adoption, regulatory developments and the overall economic environment," said James Wo.

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