Konvoy Venture’s new $150 Million Fund, US Fed Head Calls for Tighter Crypto Regulations, More Losses Caused by 3AC
Earlier today, Konvoy ventures announced a $150 million fund to help crypto projects. US central bank governor calls for more crypto regulations, and projects notice more losses caused by 3AC fallout.
Konvoy Ventures Launches $150 Million Fund
Earlier today, Konvoy Ventures announced the launch of a $150 Million fund targeting to fund 30 early-stage companies. According to reports, the new funds focus on pre-seed, seed, and Series A funding rounds for companies that create assets for different industries like healthcare and education leveraging the web3. Due to this new funds addition, Konvoy assets managed will now rise to $270 million.
When commenting about the web3, Jason Chapman, Konvoy’s managing partner, said:
“The pandemic was an adrenaline shot to the gaming industry because more and more people turned to games as a source of entertainment and also a way of staying social with their remote communities.”
According to reports, the network has a clear plan for using the newly raised funds. Another Konvoy managing partner, Jackson Vaughan, recently said:
“This new fund will not only allow us to focus on additional geographic regions but also new types of companies and technologies… If there’s one main learning from this period [the pandemic], in which the world has undergone unprecedented disruption, is that there is such an enormous opportunity ahead of us.”
US Diplomats Request Japan’s Crypto Exchanges to Stop Interacting with Russia
Recent reports indicate that representatives of the US government have asked crypto exchanges registered in Japan to cut off business with Russia. According to sources, these calls come as a way to show strict measures on economic sanctions.
A few months ago, the Japan Financial Ministry, FSA, warned that crypto firms should stop processing transactions to sanctioned individuals or institutions. They imposed severe consequences, including possible prison sentences and fines.
The US asked Japan to pressure crypto miners who interacted with Russia earlier. A Financial Times report indicates that:
“The US has called on Japan to step up pressure on the country’s cryptocurrency exchanges and miners, urging them to sever ties with Russia in a bid to further financially isolate the country from the outside world. The request from US diplomats was directed to several of Japan’s 31 officially licensed crypto exchanges that are still running in Russia, according to people close to the situation.”
The reports indicate that the US diplomats asked Japan to halt crypto mining activities around the Irkutsk region in Siberia. The US state department said that the country and its allies are “united in our determination to hold Russia to account” for their activities in Ukraine. The statement continues to say that the US “will continue to evaluate the impacts of our measures and are prepared to take further measures.”
US Central Bank Governor Calls for Strict Crypto Regulation
In a recent statement at the Bank of England Conference, Lael Brainard, the Fed Vice-chair, noted that it’s essential to “ensure the regulatory perimeter encompasses crypto finance” now. She highlighted the recent risks and losses that crypto investors got saying:
“We are closely monitoring recent events where risks in the system have crystallized and many crypto investors have suffered losses… Despite significant investor losses, the crypto financial system does not yet appear to be so large or so interconnected with the traditional financial system as to pose a systemic risk.”
The central bank governor also said:
“This is the right time to establish which crypto activities are permissible for regulated entities and under what constraints so that spillovers to the core financial system remain well contained.”
Blockchain.com Loses $270 Million due to 3AC Troubles
Blockchain.com, one of the most trusted platforms for buying, selling, and trading crypto, recently suffered about $270 million in losses due to the problems associated with Three Arrows Capital. Blockchain.com announced that they informed their shareholders of the losses they would suffer because of 3AC. A court recently ordered the liquidation of 3AC, with many crypto stakeholders noting that the hedge fund “defrauded the crypto industry.”
3AC became insolvent recently, causing problems for many crypto projects, including BlockFi, Celsius, and Voyager. While many have suffered, Blockchain.com CEO Peter Smith mentioned that the company is healthy and customers will not suffer losses.
Crypto Bulls Continue Today
After turning slightly bullish yesterday, the crypto market has continued with the positive move, with many assets gaining in the past 24 hours. The crypto market’s value is over $962 billion, gaining about 0.62% today. Currencies like Bitcoin, Ethereum, BNB, and XRP all appear to be in a bullish run.
