Just In: Ant Group Drops $100 Mln Investment Plan Amid Crypto Uncertainty

The Chinese financial technology behemoth, Ant Group is preparing to exit its $100 million investment in AT&T Capital, Bloomberg reported while citing people familiar with the matter. The latest report marks a significant step back of Ant Group from its earlier bet on the volatile digital asset landscape, amid ongoing and recent uncertainties in the cryptocurrency market.

Future Of AT&T Capital

Founded in April 2021, A&T Capital made significant investments in some of the hottest startups within the cryptocurrency space. This included backing digital asset lender Matrixport and Ethereum software creator ConsenSys, among others. Notably, Ant Group held a substantial stake in A&T Capital.

Meanwhile, the recent decision of planning to abandon the investment follows the resignation of A&T’s founding partner, Yu Jun, who left the firm amid an internal investigation into his workplace conduct. Yu, a former executive at Ant Group, had played a key role in establishing Jack Ma-backed A&T to invest in offshore cryptocurrency projects.

As of writing, the future of A&T Capital remains uncertain. It is unclear whether the venture firm will continue its operations or seek new investors to fill the void left by Ant Group’s withdrawal.

Meanwhile, the visitors to A&T’s website were met with a timed-out error message as of Monday afternoon. Both Ant Group and Yu have refrained from commenting on the matter, and requests for comment from A&T Capital’s representative have gone unanswered, the report said.

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Crypto Venture Funding Scenario

The Ant Group’s decision to unwind its investment in A&T Capital comes at a time when the cryptocurrency venture funding landscape has faced challenges.

Notably, venture capital investments in crypto amounted to slightly below $2.3 billion from April to July this year, marking the lowest quarterly figure in over three years, as reported by PitchBook. Investments in the first half of 2023 plummeted by nearly 75% compared to the previous year, totaling $5 billion.

This decline follows the turmoil in the virtual asset market last year and coincides with a surge in interest and investment in artificial intelligence technology.

Ant Group’s move underscores the complexities and uncertainties surrounding the digital asset space, where regulatory scrutiny and market volatility have become prominent factors influencing investment decisions. In addition, the recent concerns over FTX getting a Federal Judge’s approval to liquidate its cryptocurrency holdings also weighed on the market sentiments.

Meanwhile, The future trajectory of A&T Capital and its cryptocurrency investments remains an area of interest for industry observers as the sector continues to evolve and adapt to changing conditions.

Also Read: NYDFS’ Proposed Framework For Crypto Listings And Delistings – WSJ