The number of unicorn companies in the cryptocurrency space has been rapidly rising over the past few months.
The rise in crypto unicorns is worrying
The number of cryptocurrency unicorns has been increasing rapidly over the past few months as funds continue to pour into the crypto space. Crypto companies have been raising funds to expand their offerings to meet the growing demands in the market.
However, SEC Commissioner Allision Herren Lee recently stated that she is concerned by the rise in privately funded cryptocurrency unicorns. The commissioner said there is not much information available about some cryptocurrency companies, and that is something she is concerned about.
She stated that
Despite their outsize impact, there is little public information available about their activities. Although some of these large firms are subject to industry-specific regulation, such regulation may be quite sparse (as with the growing number of crypto-related Unicorns) or does little to address financial transparency.
Unicorns are private companies that are worth $1 billion or more. In the past, Unicorn companies in the crypto space are rare, but the past few years have seen a surge in the number of cryptocurrency companies worth over $1 billion.
VC firms and private investors are pushing funds into the crypto space
Venture capital firms and other private investors have been pouring billions of dollars into the cryptocurrency space over the past few years. Previously, crypto companies mostly raised funds via public events such as token sales. However, the trend has changed in recent times as the market continues to evolve.