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Record funding for blockchain projects

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2022 was not a good year for the global economy. War, inflation, interest rate hikes, supply chain problems and the aftermath of the corona pandemic caused turbulence in the financial markets, some of which were severe. The crypto space also struggled with its own crises. The implosion of the Terra ecosystem, mass layoffs, waves of bankruptcies and, last but not least, the demise of FTX depressed prices and propelled the sector into a new ice age.

Contrary to expectations, however, interest in blockchain technology remained unabated, especially from the donor side. That says a new report the venture capital firm “CV VC”. According to this, blockchain projects took in 26.8 billion USD from financing rounds. This means that 2022 will exceed the previous record year of 2021 by 4 percent. Half of the deals were closed in the USA, followed by Asia with 26 percent. Europe takes third place with 21 percent.

Blockchain funding in Africa is booming

One region that continues to grow in importance is Africa. Blockchain projects raised a total of 474 million USD on the continent last year, up 429 percent. However, the funding is primarily concentrated on two countries: South Africa and the Seychelles archipelago. Together they are responsible for 81 percent of the financing rounds. The regulatory conditions undoubtedly play into the hands of the locations. This is followed by Kenya, Nigeria and Liberia. The latter made it into the top 5 with a single funding from the blockchain platform Jambo.

Three companies in particular stand out in the report, whose funding accounts for 65 percent of the total volume. Seychelles-registered crypto exchange Kucoin alone is raising a third of the funds ($160 million). It is followed by payments company MFS Africa (100 million USD) and bitcoin exchange VALR (50 million USD).

Crypto adoption is on the rise

The report highlights the rapid growth of the crypto and blockchain industry on the African continent. In terms of adoption, there is no market “where the growth and demand for inclusive and accessible financial services is more pronounced than in Africa,” said Ian Putter, regional director of Standard Bank’s Blockchain Research Institute Africa.

Populations use cryptocurrencies to compensate for currency devaluations between individual African countries. Bitcoin is now the official means of payment in the Central African Republic.

Demanding by the sharp rise in adoption Observers such as the International Monetary Fund better regulation of the sector. According to the CVVC report, crypto is currently legal in five countries. Most of them have partially or completely banned bitcoin and co. In nine states, the legal status remains unclear.

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All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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