A slowdown in crypto investment — particularly in firms offering coins, tokens and non-fungible tokens (NFTs) — will continue in the second half of the current year, according to a new report by global audit and consulting firm KPMG.

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Fast facts

• Global investments in crypto and blockchain stood at US$14.2 billion as of June 30, the report said.

• The largest deals came from venture capital (VC) raises — including US$1.1 billion raised by Germany-based Trade Republic, US$550 million by U.S.-based Fireblocks, US$500 million by Bahamas-based FTX and US$450 million by ConsenSys, KPMG said.

• Global investments in the crypto space hit a record high of US$32.1 billion in 2021, the report said, compared to US$5.7 billion in 2020 and US$5.3 billion in 2019.

• The crypto sector “collapsed” midway through the first half of 2022 due to the Russia-Ukraine conflict, rising inflation and the challenges experienced by the Terra crypto ecosystem, the report said.

• After El Salvador and the Central African Republic adopted Bitcoin as legal tender, other developing nations may follow their lead in the second half of 2022 and beyond, KPMG said.

• Crypto companies with healthy risk management policies, long-term vision and strong cost management ability will survive, while others will go bust, the report said.

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