After ~$30B of venture capital flowed into crypto/blockchain companies in 2021, Morgan Stanley strategists led by Sheena Shah expect a dramatic falloff by the end of this year, in part, because the era of "easy money is over." Rising cryptocurrency prices and ample U.S. dollar liquidity triggered record venture capital investment in 2021, the strategists wrote in note to clients dated Tuesday. "Blockchain and crypto projects raised ~$30B across >1800 deals in 2021, 160% above the average of prior years and 7% of all VC investment globally," they said. That amount is only company equity and doesn't include investors receiving projects' related crypto token instead, they said. "We think that is all going to change — the number of VC crypto investment deal peaked in December 2021, and if it matches prior performance of other sectors, could fall as much as 50% into the end of the year," the team
