July 14, 2017
Alex Wilhelm is the Editor in Chief of Crunchbase News, covering the intersection of startups and money.
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Morning Report: Cryptocurrencies have shed tens of billions of dollars in value in a slow-motion correction.

After a historic run, cryptocurrencies have given back substantial gains. While still sharply higher for the year, bitcoin and company have fallen by around 31 percent since new all-time highs were set by the asset class, according to CoinMarketCap’s dataset.

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The percent decline is rough, but the sheer dollar cost of the correction is notable by itself. The aggregate value of cryptos peaked at over $15 billion in June. That figure has fallen from $80.4 billion as of this morning.

Losses are broad. A quick rundown:

  • Bitcoin now trades for $2290, after cresting $3,000 in June.
  • Ethereum trades for under $200, after cresting the $400 mark in June.
  • And Ripple, which reached an aggregate value of over $16 billion in May, is now worth less than half that today with a market cap of $7.2 billion.

We bring up the price changes above as the falling value of various cryptos associated with initial coin offerings (ICOs) could dampen interest in the speculative financings. And if ICOs clam up, an avenue to capital for a number of projects flatlines.

ICOs slipping also undercut a critical driver of what we could call implied value of the ethereum blockchain. Bitcoin partisans likely won’t be too mad, as such a decline might bolster their preferred crypto’s place in the market. But less hype in the sector can’t be something any short-term bitcoin bull can really want.

The crypto world has had a staggeringly big 2017. But gravity exists, even in the blockchain.

From the Crunchbase Daily:

FanDuel, DraftKings terminate merger

  • FanDuel and DraftKings, the two leading fantasy sports sites, have called off plans for a merger. Weeks earlier, federal antitrust regulators moved to oppose the merger on the grounds that the combined company could stifle competition as it would control more than 90 percent of U.S. paid fantasy sports market.

Segment raises $64M Series C

  • Segment, a provider of customer data management tools, raised $64 million in a Series C round led by Y Combinator Continuity and joined by Google’s GV and existing investors. The new financing brings total funding for the five-year-old, San Francisco-based company to nearly $110 million.

AI investment hits new highs

  • Investors have put a record-setting $3.6 billion into artificial intelligence and machine learning startups this year, according to a Crunchbase News analysis. Acquirers are buying more AI companies too, and VCs focused on the space are prepping to put more capital to work.