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Crypto startups feel the effects of an economic storm

Data from the research firm PitchBook showed that funding to private crypto companies in Q2 fell to its lowest level in a year. Robert Le, Fintech analyst at PitchBook, said that even though the crypto market started slowing down in November and December, those deals were already in discussion, so they closed in Q1. PitchBook said Q2 gives a truer glimpse at the gloom. Venture capitalists invested USD6.76bn into crypto companies in the period that ended in June, a 31% decline from the previous quarter. Le said that the crypto industry now mirrors the sluggish activity at large among tech and venture capital investors. Le added that everyone is hesitant about closing deals right now. The collapse of the TerraUSD stablecoin is among the examples of trouble in the crypto industry.

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