Crypto.com Expands Investment Arm to $500 Million to Back More Web3 Startups and Founders

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Hong Kong-based crypto wallet provider and trading platform crypto.com has decided to expand the size of its investment arm, called Crypto.com Capital, to $500 million (roughly Rs. 3,722 crore) to help fund web3 startups. The expansion arrives just days after cryptocurrency firm FTX announced the launch of a $2 billion (roughly Rs. 14,888.6 crore) venture capital fund called FTX Ventures to focus on advancing blockchain and Web3 technology alongside investments in “social, gaming, fintech, software, and healthcare.” Similar expansions have also been made by rival companies like Binance and Coinbase.

Crypto.com Capital was launched in March 2021 as a $200 million (roughly Rs. 1,489.63 crore) fund to invest in early-stage startups that can help grow the crypto ecosystem to one billion users. Crypto.com Capital attempts to create a blend of a lean entrepreneurial fund team with the resources and experience of Crypto.com, which reaches over 10 million users through products including a Visa debit card, trading exchange, and a non-fungible token (NFT) platform.

As per a TechCrunch report, the fund is helmed by Crypto.com co-founder Bobby Bao and targets seed and Series A deals in categories including the metaverse, blockchain gaming, NFTs, and DeFi. To date, the investment arm has completed over 20 deals and its portfolio of companies includes Efinity, Genies, DeBank, Alethea AI, YGG SEA, and Matter Labs.

Crypto.com Capital has also added Jon Russel, a technology journalist with over 10 years of experience to its list of partners. “Crypto.com Capital is not even one year old, but already we work hand-in-hand with dozens of world-class founders and we want to find more. Adding Jon to the team is a statement of intent to double down and grow the web3 ecosystem,” said Bobby Bao, Crypto.com co-founder in a blog post.

“I've had offers to move into crypto full-time before but Crypto.com is the most ambitious company in web3,” said Russell. “The Crypto.com Capital fund brings a very unique advantage to help the world's best web3 founders and startups to realise their potential and I can't wait to play my part.”

The announcement from the Hong Kong-based crypto company also shows that crypto exchanges are increasingly involved in being a rainmaker and beneficiary of the ecosystem, including the industries in which they operate.

FTX, which has helped more than 15 startups, last week announced a $2 billion crypto fund. Its founder, Sam Bankman-Fried, also owns Alameda Research, a venture company that has helped nearly 100 web3 startups.

Coinbase Ventures, the investment arm of the only publicly traded cryptocurrency exchange, and Binance, the world's largest cryptocurrency exchange in terms of trading volume, are also among the buggest investors in the web3 space.


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

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Cryptocurrency Scams, Hacktivism Will Rise in 2022: Norton

Norton claims that cyber activism will gain momentum next year, and crypto scams are likely to increase as more users buy in. Furthermore, the cybersecurity firm predicts that scammers will target people suffering through natural disasters. Norton warns that 2022 will see more hacking, more scammers, and a bigger need for online security. The next year is likely to see more casual investors in the cryptocurrency market, hinting at more scams in the segment. Phishing campaigns to steal users' login credentials or tech support scams to separate people from their money will likely see a rise.

Cybersecurity predictions for the next year have been listed out by Norton. At the top, the firm predicts a rise in cryptocurrency scams as several countries look to regulate it. The rise in casual investors who do not fully understand the nuances of how cryptocurrencies work will enable scammers to take advantage of it. “Scammers have been using those misunderstandings to separate people from their coins, and with this new set of new users, we expect a big increase in the number of scams out there. They will likely look like some of the old scams, but also, we expect to see new and creative attempts to target this new, larger set of potential victims,” the company notes.

Norton also says that the need to go online during the pandemic and having all identity documents online may cause theft, stealing of identity, and other scams. The firm also predicts that cybercriminals might carry out phishing campaigns to steal login credentials or tech support scams to separate people from their money. While most attacks are for money, some bend towards using cyber intrusion as a form of protest.

The company adds that hacker activists, or hacktivists, will use their knowledge to achieve political outcomes. They do this by disrupting governments, spreading fear, or bringing some information to light. Hacktivism and cyber terrorism were alive and well in 2021, revealing information governments would have preferred to keep secret. Norton expects to see these attacks continue, if not increase, given their reach and potential influence.

In 2022, Scammers will continue to exploit disaster struck users. Norton says that whenever there is money flowing from insurance companies or the government to the victims of natural disasters, there is someone who will try to exploit that situation, either by committing fraud with stolen identities or scamming people directly. If the trend continues, and there are more and more natural disasters and extreme weather events, Norton expects to see more scammers ready to cash in.

Lastly, Norton predicts that artificial intelligence and machine learning will increase cybercrimes. It will allow users to manipulate some forms of media and extract value from large datasets. It predicts that as deepfake technology gets better and easier to use, it will become a useful tool for criminals, scammers, stalkers, and activists.


Interested in cryptocurrency? We discuss all things crypto with WazirX CEO Nischal Shetty and WeekendInvesting founder Alok Jain on Orbital, the Gadgets 360 podcast. Orbital is available on Apple Podcasts, Google Podcasts, Spotify, Amazon Music and wherever you get your podcasts.

Cryptocurrency is an unregulated digital currency, not a legal tender and subject to market risks. The information provided in the article is not intended to be and does not constitute financial advice, trading advice or any other advice or recommendation of any sort offered or endorsed by NDTV. NDTV shall not be responsible for any loss arising from any investment based on any perceived recommendation, forecast or any other information contained in the article

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