On Friday, NFT Investments PLC, a UK-based blockchain firm that invests in companies operating in the non-fungible token, or NFT, space, announced that it would no longer be pursuing a £96m takeover of Pluto Digital. Although it did not directly state its reasons for canceling the deal, NFT Investments wrote:
“The company is well positioned to take advantage of the recent market correction in the blockchain and digital asset sectors by investing at attractive valuations.”
Back in January, NFT Investments signed a non-binding letter of intent to acquire Pluto Digital, which builds infrastructure in the field of decentralized finance, or DeFi, by reissuing NFT shares. From last November to March of this year, the blockchain sector witnessed a month-long bear market, bringing the total market capitalization of digital tokens down 40% from its all-time highs. .
However, not all crypto enthusiasts are convinced that the large-scale crash is coming to an end. Some point to the inversion of the US Treasury yield curve as a sign that a recession is looming on the horizon. Since the 1950s, the yield curve has inverted before every recession in the United States. The last time this happened, in August 2019, it caused a total crash in the cryptocurrency market due to the appearance of the coronavirus pandemic.
However, Jonathan Bixby, CEO of NFT Investments, shared a positive outlook on the blockchain industry:
“The NFT sector continues to show strong growth and despite volatile market conditions, we secured a stake in seven companies that have high growth potential and are equipped to make an impact in the blockchain sector. At the same time, we also took the opportunity to make significant profits from an investment, Kodoku Studios, which produced a 349% gain due to its acquisition by Pioneer Media Holdings Inc. last November.”
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