Venture Capitalists Exhibit FOMO, Invest in Growing Crypto Universe

Venture capital investment in crypto projects reached a record $10 billion globally in the first quarter of 2022, Reuters reports.
Such projects, ranging from crypto and NFT exchanges to decentralized finance applications and token issuers, are often known as protocols.
The fear of being left behind is leading the private equity firms to invest in crypto platforms, metaverse and Web3.
The M&A deals involving crypto target companies also ballooned globally, with 73 deals sealed in 2022 worth $8.8 billion versus 51 deals worth $6.8 billion in 2021.
Experts saw that investment levels in crypto continued to grow amid a bitcoin price slump in 2022 and another decline last summer, helping crypto firms bag good bargains.
Reuters notes that in many cases, blockchain tech firms often target brand value of backing from established players and increasing integration with the financial system.
The trend was demonstrative of investors' disbelief that a prolonged bear market in digital assets is forthcoming and the significant amount of dry powder held by funds seeking to allocate to the sector.
The VC crypto craze in 2022 also coincided with a slump in the tech-heavy Nasdaq benchmark.
The full-year VC investment in crypto projects for 2019 was $3.7 billion, $5.5 billion for 2020, and $28 billion for 2021.