One of the largest scandals in the cryptocurrency sphere – the failure of the crypto trading platform FTX and the subsequent arrest of its founder Sam Bankman-Fried – has created a strong ripple effect across the industry and turned away a lot of potential investors from crypto assets.
As it happens, 52% of the 254 investors interviewed in the study ‘Catching the Eyes of Investors’, carried out by the business lending firm Clarify Capital, plan to steer clear from investing in cryptocurrencies in 2023, according to the report shared with Finbold on April 12.
Interest in AI and tech
That said, a combined 71% of the surveyed investors stated they were likely to invest in either technology – 41% of them, or artificial intelligence (AI) investments – 30%. The latter is presumably thanks to the recent rise in interest around OpenAI’s text-based AI platform ChatGPT and generative AI.
Furthermore, the study has shown that investors are most likely to flock toward businesses that have profitability (44%), a high potential return on investment (44%), and strong leadership (28%). At the same time, they consider it a major ‘red flag’ if a pitch seems ‘too good to be true.’
Strength against traditional assets
Meanwhile, cryptocurrencies have been recording constant growth since the year’s turn, recently adding $50 billion to the crypto market capitalization in a single day, while fiat currencies, like the United States Dollar (USD), the British Pound (GBP), the Russian Ruble (RUB), and the Chinese Yuan (CNY), have all been dropping in value.
At the same time, the crypto market has been demonstrating strength against the top five major indexes in the first quarter of 2023, while Bitcoin’s purchasing power has outpaced that of the US dollar amid historically high probability for a bearish period in financial markets and failures of multiple banking giants.
All things considered, the previous year has been a challenging one for the crypto industry, but the recent surge in prices, which have been steadily growing thanks to the renewed optimism since the year’s turn, could make some investors reassess their decision to stay away from crypto investments.
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