In-Depth Exploration of the Crypto Assets Private Sale Market: Q2 2023 Review

The private sale market for Crypto Assets is crucial for the development of the entire industry. Although most ordinary investors cannot participate directly, understanding the dynamics of this market is still very valuable. This article will delve into the situation of Crypto Assets venture capital in the second quarter of 2023, explore the current financing environment, and focus on some emerging projects worth noting.

2023 Crypto Assets Venture Capital Overview

The year 2023 has been extremely challenging for crypto risk investment. Despite significant rebounds in mainstream crypto assets like Ethereum and Bitcoin this year, venture capital firms have struggled to attract new funding. Compared to last year, the investment amount has plummeted by 98%, a shocking figure.

The situation in the second quarter is equally grim. According to the data, 382 transactions raised a total of $2.34 billion, marking the fifth consecutive quarter of decline. This ongoing downward trend suggests that we may not yet have hit the bottom of the investment in crypto startups during this bear market.

One important reason for this situation is the change in the regulatory environment. The U.S. Securities and Exchange Commission has taken a stricter stance on certain crypto assets, which undoubtedly increases investors' concerns. In particular, the economic viability of the "token warrant" model is under threat, making venture capital firms more cautious when entering the non-liquid private sector of crypto assets.

Popular Financing Projects in June

Despite the overall challenging environment, there are still some noteworthy projects that have successfully secured significant funding. Here are a few projects worth paying attention to:

Mythical Games

• Financing Amount: 37 million USD
• Industry: Gaming

Mythical Games is a comprehensive Web3 game studio that has developed several Crypto Assets games and related proprietary encryption products. Their Mythical platform integrates these games and offers optional Web3 features. The platform operates on a licensed proof-of-authority blockchain, supports fiat and Crypto Assets transactions, and includes features such as fraud protection and fee optimization.

It is worth noting that the game "NFL Rivals," developed by Mythical Games in collaboration with the NFL, has achieved good results on iOS and Android platforms, which demonstrates the potential of crypto native games in the mainstream market.

Taiko

• Financing Amount: 22 million USD
• Industry: Layer 2 Solutions

Taiko is developing a Type 1 zkEVM Layer 2 rollup solution aimed at maximizing compatibility with Ethereum. Their goal is to allow protocols deployed on L1 to migrate to Taiko without modifying code. The project emphasizes "decentralization from day one", allowing anyone to participate in the chain's infrastructure and earn fees.

The uniqueness of Taiko lies in its strict adherence to Ethereum standards, which may provide developers with a seamless deployment experience while also sharing infrastructure with Ethereum.

Maverick Protocol

• Financing Amount: 9 million USD
• Industry: Decentralized Finance (DeFi)

Maverick is an innovative automated market maker (AMM) deployed on Ethereum, zkSync, and the BNB chain. It offers four preset automated liquidity strategies that can intelligently manage liquidity based on predefined parameters. The design of Maverick aims to enhance the experience of liquidity providers, especially for portfolios with high volatility.

The uniqueness of this protocol lies in its ability to allow directional price deviations to affect liquidity provision methods, which may help retail liquidity providers achieve profitability. In addition, Maverick has just launched the MAV coin, providing investors with the opportunity to participate in the project through the public market.

Conclusion

Despite the numerous challenges faced by the crypto assets venture capital market in 2023, some innovative projects have still successfully attracted the attention of investors. From gaming to Layer 2 solutions to decentralized finance, these projects demonstrate the ongoing innovation capabilities of the crypto industry. As the market environment changes and the regulatory landscape evolves, we will continue to monitor the developments in this vibrant field.