Pantera Capital, which has pioneered investments in cryptocurrency assets, has set its goal for its third venture fund at $175 million, surpassing the $25 million raised for its second fund and the $13 million from its first one, according to TechCrunch. A new filing for a Pantera venture fund offering with the Securities and Exchange Commission
Pantera Capital officials continue to maintain an upbeat outlook for cryptocurrency amidst the current market downturn. In an ICO and digital asset funds conference call Tuesday, CEO and chief investment officer Dan Morehead said blockchains are the next step in the evolution of equity, while cryptocurrency is a superior form of currency. He called bitcoin … Continued
Audius, a decentralised, community-owned music sharing platform billed as the blockchain’s answer to Soundcloud has announced the successful completion of a $5.5 million Series A funding round as it launches the world’s first ever blockchain-based music sharing protocol. Made on August 8, 2018, the announcement revealed that the funding round was led by General Catalyst and … Continued
Midway through 2013, when the bitcoin price was trading at $104, cryptocurrency hedge fund Pantera Capital published an investor letter that made what at the time seemed to be a moonshot prediction: The bitcoin price, the firm said, will one day hit $5,000. Five years on, a $5,000 bitcoin price target is considered bearish, and … Continued
Augur, which its co-founder Joey Krug previously described as the most complex decentralized application (dApp) on the Ethereum blockchain, has surpassed a million dollars at stake and demonstrated a rapid growth rate over the past few weeks. Future of Decentralized Betting In essence, Augur is a decentralized betting platform that exists on the Ethereum network.
Sometimes it doesn’t pay to diversify — just ask cryptocurrency hedge fund Pantera Capital, whose fund underperformed the bitcoin price last month. According to Bloomberg, the firm’s Digital Asset Fund underperformed bitcoin during May as the cryptocurrency markets continued to decline further from the all-time highs they set in late December and early January. Pantera
The cryptocurrency market has struggled to make major movements on the upside, as major digital currencies such as bitcoin and Ethereum have stabilized at $7,580 and $584 respectively. The valuation of the cryptocurrency market has slightly increased from $330 billion to $333 billion, by around 1 percent. Bitcoin’s Struggle Exactly one week ago, on May
Although bitcoin and blockchain technology may not take up quite as much mental bandwidth for the general public as it did just a few months ago, companies in the space continue to rake in capital from investors.
This round vaults Circle into an exclusive club of crypto companies that are valued, in U.S. dollars, at $1 billion or more in their most recent venture capital round. According to Crunchbase data, Circle was valued at $2.9 billion pre-money, up from a $420 million pre-money valuation in its Series D round, which closed in May 2016. According to Crunchbase data, only Coinbase and Robinhood — a mobile-first stock-trading platform which recently made a big push into cryptocurrency trading — were in the crypto-unicorn club, which Circle has now joined.
But that’s not the only milestone for the world of venture-backed cryptocurrency and blockchain startups.
Back in February, Crunchbase News predicted that the amount of money raised in old-school venture capital rounds by blockchain and blockchain-adjacent startups in 2018 would surpass the amount raised in 2017. Well, it’s only May, and it looks like the prediction panned out.
In the chart below, you’ll find worldwide venture deal and dollar volume for blockchain and blockchain-adjacent companies. We purposely excluded ICOs, including those that had traditional VCs participate, and instead focused on venture deals: angel, seed, convertible notes, Series A, Series B and so on. The data displayed below is based on reported data in Crunchbase, which may be subject to reporting delays, and is, in some cases, incomplete.
A little more than five months into 2018, reported dollar volume invested in VC rounds raised by blockchain companies surpassed 2017’s totals. Not just that, the nearly $1.3 billion in global dollar volume is greater than the reported funding totals for the 18 months between July 1, 2016 and New Year’s Eve in 2017.
And although Circle’s Series E round certainly helped to bump up funding totals year-to-date, there were many other large funding rounds throughout 2018:
There were, of course, many other large rounds over the past five months. After all, we had to get to $1.3 billion somehow.
All of this is to say that investor interest in the blockchain space shows no immediate signs of slowing down, even as the price of bitcoin, ethereum and other cryptocurrencies hover at less than half of their all-time highs. Considering that regulators are still figuring out how to treat most crypto assets, massive price volatility and dubious real-world utility of the technology, it may surprise some that investors at the riskiest end of the risk capital pool invest as much as they do in blockchain.
Notes on methodology
Like in our February analysis, we first created a list of companies in Crunchbase’s bitcoin, ethereum, blockchain, cryptocurrency and virtual currency categories. We added to this list any companies that use those keywords, as well as “digital currency,” “utility token” and “security token” that weren’t previously included in the above categories. After de-duplicating this list, we merged this set of companies with funding rounds data in Crunchbase.
Please note that for some entries in Crunchbase’s round data, the amount of capital raised isn’t known. And, as previously noted, Crunchbase’s data is subject to reporting delays, especially for seed-stage companies. Accordingly, actual funding totals are likely higher than reported here.
The founder of cryptocurrency hedge fund Pantera Capital said on Thursday that he believes the cryptocurrency market cap could one day be worth $40 trillion. Dan Morehead, who is also the firm’s CEO, said in an interview with Bloomberg that he believes the fair market value of the cryptocurrency market cap is an order of … Continued
Bitcoin in Brief today is slanted toward a crypto winter slowly thawing, as Pantera Capital bets on a moonshot price point. Also, the world’s most popular decentralized digital asset has been forked more than a plate of good pasta; there’s a growing list of countries who’re less likely to nab your crypto profits; Yahoo! smashes rumors; and a good-hearted wager between bitcoin core and bitcoin cash partisans exemplifies how ecosystem actors should treat one another.
Bulls have a panther as their advocate to help thaw this crypto winter. We reported this week, “Pantera Capital, an investment firm exclusively operating in the cryptocurrency and distributed ledger technology sectors, has published a letter predicting that bitcoin has established the low for its current bear market. Pantera cites a number of factors as informing its market outlook.”
Among those factors are taxes on capital gains, where estimates are in the many, many billions expected from enthusiasts. That in turn, the fund theorizes, dragged prices down, and bitcoin core has found a bottom at $6,500, as holders were forced to sell in order to pay government bills. We continue, “Pantera also states that ‘It’s highly likely’ for the price of bitcoin to exceed its previous record highs of $20,000 ‘within a year,’ asserting that ‘A wall of institutional money will drive’ the growth in price.”
Speaking of Taxes
Until that prediction comes true, readers should pack their bags to save money from the tax man! Start looking for places to stay in Germany, Slovenia, Denmark, Belarus, South Korea, Singapore, as they’re some of the most advantageous.
We stressed how many “jurisdictions have yet to update their tax laws to encompass cryptocurrencies. Rules governing taxation are often incoherent and very different even in countries that are part of a common space. In the European Union, for instance, tax rates in member-states vary between 0 and 50%.”
Be honest. You’ve never heard of Bitcoin Minor, Bitcoin King, nor Bitcoin Boy. How many times would you guess the Bitcoin network has been forked? During an extensive and really interesting investigation, we revealed nearly 70 times. That’s right, 70.
We summarized findings as how forking “bitcoin used to be a rarity. Then it became the norm. And then it became a meme, with anyone and everyone forking bitcoin on a weekly basis. There have now been a total of 69 bitcoin forks plus another 18 altcoin forks. Holders of bitcoin, monero, ethereum, and litecoin can claim almost 80 additional coins for free. Whether it’s worth their time to do so, however, is another matter.”
The Fork of All Forks Remains a Solid Option
The most famous of forks is, of course, bitcoin cash (BCH). Its being faster, sleeker, younger, and bigger (block wise) has lead those on the bitcoin core (BTC) side to take a stance on BCH’s long term viability. And while each side feels passionate about its coin, and the future that it entails, debate often become rancorous, turning everyone off.
We reported how two well-known advocates joked and ribbed one another about Core’s anticipated Lightning Network solution. They bet bragging rights if a demonstration of the solution failed a basic transaction. Loser would have to wear a t-shirt of the winner’s coin. Regardless of which won, the import is how the two men exchanged laughs and good humor, and the ecosystem needs more of both.
Japan Continues to Lead
No laughing matter is how the crypto winter continues its thaw as “Yahoo! Japan has confirmed that it is entering the crypto space by acquiring a stake in a Japanese cryptocurrency exchange that is already licensed by the country’s financial regulator. The company plans to launch a crypto exchange in the fall of this year,” we explained.
We Have the Best Readers in All of Crypto
Thanks to our readers liking and sharing, our post on aspects of Islam possibly opening to cryptocurrency was picked up and republished and referenced around the world. Some contend it was the root cause of bitcoin’s recent price rebound. Great job, gang.
The crazy good book by Wendy McElroy we continue to serialize brings in wonderful reader comments and observations. To wit:
Do you think bitcoin will continue to rise or to fall to new lows? Let us know in the comments section below.
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Cryptocurrencies may soon land the white whale of the investing industry: institutional funds such as pensions and endowments. That’s according to Ari Paul, chief investment officer at cryptocurrency hedge fund BlockTower Capital, who told CNBC that he believes it’s “inevitable” that these institutional investment funds will add cryptoassets to their portfolios — sooner rather than … Continued
The well-known venture capitalist and cryptocurrency investor Tim Draper has revealed his four-year prediction after holding back his statements in a few interviews some weeks ago. Now Draper, who correctly predicted bitcoin’s price would surpass $10,000 USD per coin by 2018, believes in just four years the price will be $250,000.
Tim Draper is a venture capitalist who has a whole lot of money tied up in technology-based investments. Draper is a strong believer in cryptocurrency solutions and blockchain technology. The man has been a pretty popular figure among the bitcoin community for quite some time. Back in 2014, Draper predicted four years before it happened that by 2018 the price of bitcoin would be above $10K. Further, Draper put his money where his mouth is, and purchased 30,000 BTC for an undisclosed price at the U.S. Marshals Silk Road bitcoin auction. The spot price of those coins were worth $19 million at the time, and today that investment should be worth at least $239 million.
Over the past couple of months, Draper has avoided giving his next four-year prediction while being interviewed by the media. But on Friday the 13th of 2018, Draper revealed his forecast over the social media platform Twitter.
“Serious winds (of change) at our block(chain) party last night,” Draper writes to his followers on Twitter.
I predict $250K by 2022
Many Luminaries and Moguls Predict New All-Time Highs This Year, But Draper Has Had a Deep Conviction for Cryptocurrencies for Years
Tim Draper is not the only investor who’s bullish about bitcoin’s price reaching new highs. Fundstrat advisor and co-founder Tom Lee still believes bitcoin will outpace last year’s all-time high by the year’s end. Lee had also predicted bitcoin would rally to $10K by the end of 2017 and his forecast came true. This week the well-known hedge fund Pantera Capital detailed that $6,500 was bitcoin’s low and expects the price to touch $20,000 by the end of 2018. Lastly, the founder and chairman of investment firm LDJ Capital, David Drake, believes bitcoin’s price will top $30,000 by the end of the year.
Although Draper’s prediction comes from a person who has had a deep conviction for digital currencies and bitcoin for a long time. In fact, Draper declared that digital currencies will dominate fiat currencies in five years time at the 2017 Web Summit. The investor stated during the summit:
In five years, if you try to use fiat currency they will laugh at you — bitcoin and other cryptocurrencies will be so relevant — there will be no reason to have the fiat currencies.
Following 2017 Web Summit, Draper explained in an interview this year that he believes “bitcoin is the future currency.” The venture capitalist explains, “People ask me, ‘Are you going to sell your bitcoin [for fiat]?’ and I say, ‘Why would I sell the future for the past?’”
It’s safe to say the man’s faith in cryptocurrency is also well represented throughout the many blockchain startups Draper Associates invests in as well as his entrepreneurship ‘crash course’ school Draper University. $250,000 per bitcoin by 2022 would definitely be some ‘serious winds of change,’ but due to Draper’s last forecast coming true four years later, people are taking his predictions very seriously.
What do you think about Tim Draper’s prediction that bitcoin will be $250,000 by 2022? Do you think that it is possible for it to reach that price range? Let us know your thoughts on this subject in the comments below.
Images via Twitter, Draper University, and Wiki Commons.
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