While the cryptocurrency market has suffered significant losses in 2018, the number of deals related to blockchain and crypto companies has surged 200% over the same period.
According to a recent CNBC report that cites data compiled by JMP Securities, there have been 115 deals involving cryptocurrency or blockchain, and the total is on pace to hit 145 by the end of 2018. This is a giant bump from 2017, which only saw 47 similar deals completed.
JMP notes that the deals have been relatively small, with the majority of sales closing under $100 million.
“You’re seeing a mispricing of assets. Even for great businesses, the value of the token remains correlated to bitcoin, which can create an ideal opportunity for strategic acquirers,” said Satya Bajpai, who leads digital asset banking at JMP, told CNBC in an interview
We also recently reported that hedge funds focused on digital assets have gained significant traction in 2018, and now account for 20% of all fund launches.
Current estimates have the total number of hedge fund launches in 2018 at roughly 600, bringing the percentage of crypto funds to 20%. This is a major jump from 2017, which had crypto funds comprising only 6% of new hedge fund launches, up from less than 3% in 2016.
Taken together, it’s apparent that the brutal bear market has not been enough to deter smart money and innovators from flooding into the space. Given the relative infancy of the entire industry, projects that continue to BUIDL will likely be successful.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.