Crypto Investment Downturn May Continue to End of 2022 - Investors will move away from NFTs and toward blockchain infrastructure projects, global auditing and consulting firm KPMG said.

    Global investments in crypto firms fell from a record $32.1 billion last year to $14.2 billion in the first half of 2022. The slowdown is expected to continue until the end of 2022, according to a new report of KPMG, a global network of professional firms providing Audit, Tax and Advisory services.

    Although the crypto space has collapsed significantly since the middle of the first quarter of 2022 due to the Russia-Ukraine war, along with rising inflation and Terra Luna crash, crypto investment at mid-year still outperformed previous years. “This highlights the growing maturity of the space and the breadth of technologies and solutions attracting investment”, KPMG noted in the report.

    The top deals in the first half of the year were venture capitalists who put $550 million in crypto custody technology firm Fireblocks, $450 million in Ethereum Builder ConsenSys and $400 million in FTX Crypto Derivatives Exchange.

    In the second half of the year, KPMG thinks that investors will move away from ICOs, NFTs, and toward blockchain infrastructure projects, especially those associated with the use of blockchain in updating financial technology. 

    KPMG predicts that well-managed crypto companies with healthy risk and cost management strategies will survive in the downturn. Meanwhile, the resilience of other crypto companies will be very difficult as some seek to recapitalize at lower valuations.

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