in Cryptocurrency Market

Published:’s CEO, Kris Marszalek, expressed doubts about the high valuations in the cryptocurrency sector in a recent interview with Bloomberg News. He noted that the current rally in the crypto market has led to an increase in billion-dollar funding rounds for early-stage startups, but also compared it to the investment frenzy during the COVID-era bull run which had mixed results.

Marszalek stated that while their venture capital unit, Capital, has made around 70 investments to date with a nine-figure sum, they have scaled back their investment activity since last year. This is despite having a $500 million budget for investments in crypto startups at the beginning of 2020. They have only made four investments in the past year, compared to 35 in the two years before.

“We want a good financial return,” Marszalek said, “but currently, project teams are throwing around very generous valuations.”

He also mentioned that is in the process of hiring 1,400 employees, just over a year after letting go of one-fifth of their workforce. They have already added 700 employees since November and plan to add another 500 in customer service and 200 in corporate positions. Other companies in the crypto sector, such as Coinbase Global, Kraken, Binance, and Gemini, have also been expanding their staff.

In a separate interview, Ripple CEO Brad Garlinghouse predicted that the cryptocurrency market will surpass the $5 trillion mark in 2024. He believes that the market will double in value this year due to factors such as the approval of the first U.S. spot bitcoin exchange-traded fund and the upcoming “halving” of bitcoin.

Garlinghouse expressed optimism about the industry, stating that the approval of ETFs and the increasing demand for cryptocurrency from institutional investors will drive the market. He also noted that as demand increases and supply decreases, the value of cryptocurrencies will continue to rise.

In conclusion, the recent rally in the cryptocurrency market has led to some skepticism about the high valuations in the sector, with companies like scaling back their investment activity. However, industry leaders like Garlinghouse remain optimistic about the future of cryptocurrency and its potential for growth in the coming years.

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