Cryptocurrency startups used SPACs to go public. Blank-check firms promised investors a merger with a private company, usually a tech startup.
Crypto SPACs have cooled dramatically in recent months. Cryptocurrency prices and tech stock sell-offs contributed to this.
Many crypto SPACs cannot locate merger partners. SPACInsider reported 58 crypto SPACs seeking merger partners as of March 8, 2023.
Several crypto SPACs have been delisted from stock markets. SPACInsider reported 14 crypto SPACs delisted by March 8, 2023.
Cryptocurrency business fortunes are shifting as the crypto SPAC market declines. The business faces governmental scrutiny and falling cryptocurrency values.
Crypto SPACs may never recover. If the bitcoin business recovers, the crypto SPAC market may too.
Meanwhile, cryptocurrency investors should avoid crypto SPACs. These hazardous investments may fail.
Crypto SPAC investors should do their homework. They should also know the hazards of investing in these firms.