Observations on Crypto 

• Global crypto markets, which boomed during the COVID-19 pandemic, rapidly crashed during the last 6 months (55% erosion of market cap)
• The current macroeconomic environment of rising interest rates, changes in crypto regulations, rising energy prices, and recent failures of stablecoins (Luna-Terra crash) have collectively contributed to a rapid erosion of the crypto market cap
• On the flip side, we continue to see several global merchants and financial services firms testing markets with new crypto commerce use cases and pilots
• CBDCs continue to stay relevant as disruptive form factors for digital commerce
• Metaverse and Web 3.0 platforms are gaining prominence with leading brands, and crypto is the preferred payment method in these two environments
• Despite near-term challenges, payments and fintech players continue to invest in crypto due to its long-term strategic importance
  

Please do not hesitate to contact Anupam Majumdar at Anupam@FlagshipAP.com or Pedro Giesta at Pedro@FlagshipAP.com with comments or questions.