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Biznextindia : Amid a dry spell in funding, investors are cautious about Web 3.0 and related technology-run startups. According to sources in the know, setbacks in some Web 3.0-related startups and a fall in crypto value seem to be the reasons for such a slowdown.
Blockchain, Web 3.0 and related technology domains like Metaverse have created a lot of buzz with billions flowing into such startups. However, the crashing of cryptocurrency values has made investors cautious in recent days. Also, the anticipation of an economic slowdown globally is prompting investors to conduct more due diligence before committing money.
With the fall in cryptocurrencies, Indian crypto exchanges have seen the exit of participants in recent months. Indian investors have lost a lot of wealth in the recent crash of Luna and subsequent delisting from crypto exchanges. Sources in the know said that Luna was among the most popular digital currencies among Indian investors. Apart from such volatility, 30 per cent taxation on crypto earnings and lack of regulations are also making investors cautious in this space.
Similarly, controversies related to InvactMetaversity have also not gone down well among the investors’ community. Former Twitter India head Manish Maheshwari, who launched edtech start-up InvactMetaversity six months ago, stepped down from the firm as its CEO and director after differences with cofounder Tanay Pratap.
Interestingly, despite a crash in cryptocurrency and other digital assets, global investors continue to remain bullish on Web 3.0-related opportunities. California-based investment firm Andreessen Horowitz (A16Z) has announced the launch of two funds worth around $5 billion to invest in crypto and Web 3 opportunities. Currently, Indian startups in edtech, gaming technology along with cryptos are using this emerging technology. With a large user base of the internet, the country is seen as one of the crucial geographies to drive future growth.