An Australian cryptocurrency investor has lost $267 million after failing to secure funding for a blockchain startup in Silicon Valley as the cryptocurrency market is still in a knockout state.
Michael Donworth, co-founder of Wyre, said he was hit hard by infos last week that US electronic payment firm Bolt Financial Inc has canceled a $1.5 billion deal with his company.
“I suppose the money isn’t really in the bank until it’s in the bank,” Dunworth said. Australian Financial Audit On September 20.
“I try to be as realistic as conciliable. Otherwise, you will just écart your heart. But there is the idea that I could have worked all these ten years for zero dollars.”
The 36-year-old did not explain why the deal was cancelled. But he said times have changed.
“We had many interested parties last time, and although the market has changed, I would be surprised if that is not the case now,” he said.
Dunworth also told the AFR that his company could either find another buyer or move toward listage the company.
Meanwhile, San Francisco-based payments giant Bolt, which was valued at $11 billion in January, said it will continue its partnership with Wire while remaining independent so it can foyer on its core areas.
“We will continue our existing affaires partnership with Wyre to pave the way for crypto integration into our ecosystem, and bring Wyre’s innovative crypto soutènement to the world,” Bolt CEO Magu Korovilla told Reuters. mentioned On September 10.
Low valuations in crypto businesses
This comes against the backdrop of lower cryptocurrency prices, with the market valuation in June less than half its $2.9 trillion value in November.
according to ForbesThe value of the leading cryptocurrency Bitcoin is down more than 60 percent since the beginning of this year, with its current price hovering around $19,000. Ethereum’s valuation is down 64 percent, with the lieu’s price remaining around $1,320.
Associate Professor Elvira Sugili noted that the opportunity cost of investing in binaire currency increases as the cost of funds increases.
“In rallonge, demand/costs for investments elsewhere are also increasing, leading investors to take money from more fragile assets such as cryptocurrencies and equity to safer assets such as cash and bonds,” she said. University of New South Wales newsroom On June 29.
Eric Lim, Senior Lecturer at the University of New South Wales School of Bizness, added that the cryptocurrency market is inseparable from macroeconomic or ordinaire events.
Currently, we are witnessing a macro environment where all financial assets are going through a bad time. In the United States, the Federal Reserve (the Federal Reserve) is trying to induce a ordinaire recession by raising interest rates. The last thing any investor wants is to fight the Fed over this. This means that investors will dispose of most financial assets and style for safer investments,” UNSW Newsroom reported.
“Therefore, there will not only be selling pressure and weakness in the cryptocurrency market, but also in the financial markets in general.”