Investment banking firm Dragonfly Capital Partners has raised $100 million for investment in cryptocurrency startups. The company’s intention is to invest in companies which will bridge the East and West in the crypto economy.
‘A New Asset Class’
Dragonfly Capital Partners, a subsidiary of Dragonfly Capital, managed to raise a total of $100 million to invest in cryptocurrency startups. Reportedly, the firm is going to invest in three different types of assets.
First are crypto-native funds which want to become the next asset management authorities for the crypto-asset class. The company also plans to invest into protocols, as well as applications, which will serve as the foundation for the decentralized economy.
Last, but not least, Dragonfly will invest into tech startups which are bridging the centralized and the decentralized world.
Speaking on the matter was managing partner Alexander Pack, who noted:
Throughout our years of investing in crypto at our respective VC firms we realized how difficult it is for incumbent investment firms to participate in this tech trend. The issue is that crypto is not just a new technology but a new tech-driven asset class, something we haven’t witnessed in decades. […] A new asset class calls for a new breed of asset manager. That’s why we launched a crypto-dedicated fund and why we invest in other crypto funds.
It’s worth noting that Dragonfly already has an attractive portfolio of more than 20 investments spread across a diversified vertical.
A Time in Distress
The prices of cryptocurrencies continue to plummet, as the market lost over $13 billion overnight. The world’s first and foremost cryptocurrency, Bitcoin (BTC), is trading at $6,284.71 at the time of writing, marking a decline of 4.20 percent over the last 24 hours.
As a matter of fact, the entire top 20 is trading in the red today as no cryptocurrency has made any gains throughout this period.
Also, a few days ago, Bloomberg reported that initial coin offerings funding is at its lowest point in 17 months as September saw less than $300 million raised in total. This is 90 percent less than the peak amount of $3 billion raised in January.
What do you think of Dragonfly’s move to raise $100 million for investments in the cryptocurrency field? Let us know in the comments below!
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