NFT Investments PLC, a U.K.-based blockchain startup focused on nonfungible tokens, or NFTs, stated on Friday that it would no longer pursue a 96-million-pound acquisition of Pluto Digital. NFT Investments wrote: Despite not explicitly stating its reasons for abandoning the deal, it wrote:
“By buying at good valuations, the company is well-positioned to profit from the recent market downturn in the blockchain and digital asset industries.”
NFT Investments signed a non-binding letter of intent in January to buy Pluto Digital, a company that builds infrastructure in the decentralised finance (DeFi) space, using new NFT shares. The blockchain industry saw a month-long bear market from November to March of this year, dropping the entire market cap of digital assets more than 40% below all-time highs.
NFT Investments expressed optimism in the blockchain industry
Not everyone in the crypto community, however, believes the big-picture sell-off is over. The inversion of the US Treasury yield curve has been interpreted by some as a sign that a recession is approaching. Every U.S. recession since the 1950s has been preceded by an inversion of the yield curve. The last time this happened was in August of this year, when the COVID-19 epidemic broke out, causing a full-fledged rout in the cryptocurrency market.
However, Jonathan Bixby, executive chairman of NFT Investments, expressed optimism in the blockchain industry:
“Despite unpredictable market conditions, we acquired a share in seven firms with great development potential and the ability to impact the blockchain sector. At the same time, we took advantage of huge returns from one investment, Kodoku Studios, which had a 349% rise following its acquisition by Pioneer Media Holdings Inc. last November.”