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For the remainder of the year, interest in cryptocurrencies will decline, KPMG reveals

According to a recent analysis by international audit and consulting firm KPMG, a slowdown in cryptocurrency investment, notably in companies producing coins, tokens, and non-fungible tokens (NFTs), will persist in the second half of the current year.

According to the research, global investments in cryptocurrencies and blockchain amounted at US$14.2 billion as of June 30.

The greatest transactions were venture capital (VC) raises, including the US$1.1 billion raised by Trade Republic in Germany, the US$550 million raised by Fireblocks in the US, the US$500 million raised by FTX in the Bahamas, and the US$450 million raised by ConsenSys, according to KPMG.

According to the analysis, global investments in the cryptocurrency sector reached a record high of US$32.1 billion in 2021, up from US$5.7 billion in 2020 and US$5.3 billion in 2019.

According to the research, the Russia-Ukraine conflict, growing prices, and difficulties facing the Terra crypto ecosystem caused the crypto sector to “collapse” halfway through the first half of 2022.

According to KPMG, more developing nations may follow El Salvador and the Central African Republic in adopting Bitcoin as legal cash in the second half of 2022 and beyond.

The report stated that while some cryptocurrency businesses would fail, those with sound risk management practices, long-term thinking, and good cost management capabilities will thrive.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.