Back then, VC financiers considered direct contributions to digital currencies as such that would yield a better profit that early-phase fundraisers of projects such as Coinbase, Binance, and Circle. Since then, these firms have turned into the colossi of the digital currency sector, reaching multi-billion dollar financing valuations with successful and durable business models.
In November 2017, retail traders and individual financiers caused an unpredicted short-term price surge among digital currencies, letting the cryptomarket hit a collective valuation of more than 800 billion dollars. Nevertheless, institutional financiers have more interest in financing the market via stable and regulated financing vehicles.
At the moment, there is certain clarity in the vision of digital currency companies, such as Coinbase and Binance, which is to enhance the adoption of cryptocurrencies and solidify the infrastructure of the cryptoexchange marketplace.
To institutional financiers and major accredited financiers, indirect contributions in the cryptomarket present a better appeal, in part due to blockchain startups, decentralized campaigns, and ICOs have been encountering difficulties in attempts to maintain their relevancy and provide a clear vision.
Taking into account that institutional financiers and VC companies prefer emerging firms establishing infrastructure as opposed to cryptocurrencies with business models that lack proof of success in the short term, firms are anticipated to outdo the majority of the startups in the worldwide marketplace.