- Crypto M&A rates are dropping in America.
- Rate of funding too is dropping.
According to a recent report released by PricewaterhouseCoopers (PwC), most Crypto mergers and acquisitions (M&As) are no longer dominated by Americans. Instead, most deals have found their way into the Asians and European markets.
According to the report which assessed the last 6 months of this year, it was discovered that the value of all Crypto M&A carried out in the first half of 2020 was more than that of 2019 while the value of the average deal also saw an increase.
The report further said that 57% of all Crypto M&A deals occurred in Asia and Europe, which is an increase from the 51% seen in 2019 and the 43% recorded in 2018.
Individually, Asia had recorded 30% of the deal, an increase of 4% from the 26% it recorded in 2019, while Europe also saw a 2% increase from the 25% recorded in 2019.
Asia’s new dominance could be linked to its government activities, which are actively trying new policies that would make the citizens accept the crypto coins.
There is also a decrease in fundraising activities for Crypto M&A
PWC in its report further highlighted the rising decline in fundraising activities in America with only 28% of all fundraising activities worldwide happening in the region.
It pointed out that the rate of capital investment had declined by over 50% from an all time high of $408 million which it had recorded in the first quarter of 2018.
It was further noted that seed funding had declined massively for crypto mining instead projects like infrastructural development for blockchain had seen an increase in the level of interest.
Another fundraising activity that has seen a rise is the cryptocurrency exchange firms and that are now recording a high in crypto prices, interest of regulatory bodies in providing a clear cut regulation that helps all industry players and other factors that are playing into the hands of the growth.