Needs Cash as Valuation Falls 70%: Will VCs Back Struggling Startup? – Cardano (ADA/USD), Bitcoin (BTC/USD) Needs Cash as Valuation Falls 70%: Will VCs Back Struggling Startup?  – Cardano (ADA/USD), Bitcoin (BTC/USD)

Cryptocurrency exchange is in the midst of a down-round fundraising campaign, which could result in a value reduction of more than 70%.

According to a Bloomberg report, the company plans to raise money at a fraction of the $14 billion valuation it earned earlier this year.

Discussions are still in the early stages, and UK-based investment companies Kingsway capital assumed to lead the effort.’s other backers include Lightspeed Venture Partners and Baillie Gifford & Co.

See also: Bitcoin falls but remains above this key level

Valuation down by over 70%

The digital asset company is expected to raise funds valued at between $3 billion and $4 billion. It’s a far cry from when was valued at $14 billion in a Series D fundraising round led by Lightspeed Venture Partners in late March.

The London and Miami-based company did not disclose the exact amount raised at the time.

Last year, it raised about $300 million at a valuation of $5.2 billion.

Amidst the market downturn since the beginning of this year, major cryptocurrencies such as Bitcoin have BTC/USDEthereum ETH/USDRipple XRP/USDand CardanoADA/USD have lost almost 60-70% of their values ​​since their all-time high set last November.

According to a PitchBook research report, VC funding for crypto companies fell by 37% to $4.44 billion in Q3 2022.

The decrease is nearly 50% compared to Q1 2022 when VC investors invested a record $8.83 billion in cryptocurrency and blockchain startups.

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Bankrupt crypto hedge fund Three Arrows Capital (3AC) “is quickly becoming insolvent and the default effect is approx. [USD] 270 million worth of cryptocurrency and US dollar loans from,” according to CEO Peter Smithin a letter to shareholders written at the beginning of July.

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To save costs, the company laid off 150 employees, or 25% of its workforce, in July.

One of the oldest firms in the cryptocurrency sector, was founded in 2011.

It created one of the first online wallets and blockchain explorers.

According to the platform, a third of all transactions on the Bitcoin network are done through it, and there are 37 million confirmed users.

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