Coinbase-Backed Crypto Venture C1 Explores Acquisition Opportunities in Australia, According to Report

Australia is proceeding cautiously in the realm of cryptocurrency in the wake of the FTX collapse. Amidst this scenario, C1, a cryptocurrency venture capital firm led by former Coinbase executives, is actively establishing connections with various cryptocurrency groups and Australian venture firms. Their main goal is to utilize their significant $500 million fund (AUD 760 million) to acquire private holdings from investors, a move that has garnered extensive coverage from the Australian Financial Review.

C1 has strategically initiated communication with notable cryptocurrency entities, notably interacting with Animoca Brands, a venture capital firm concentrating on gaming and the metaverse, and Chainalysis, a key player in blockchain analysis. The proposed arrangement revolves around acquiring private holdings at a discounted rate, ranging from 50% to 80% of their last valuation.

Australia's cautious approach to the cryptocurrency industry is a direct response to the FTX collapse. The government is actively shaping a regulatory framework that might postpone the issuance of licenses to Australian digital asset platforms until 2025. Additionally, recent updates in tax guidelines impose capital gains tax on wrapped tokens, and there is a clear statement that the introduction of a central bank digital currency (CBDC) is not on the immediate horizon. Despite this conservative stance, there are indications that sentiment within Australia may be changing, driven by the increasing momentum in the broader cryptocurrency market.

The information provided in the report is credited to a pitch deck outlining C1's strategic approach. The firm is actively searching for entities with a "minimum valuation of $300 million in their last funding round, preferably Series C and later." C1 intends to deploy funds in the range of $20 million to $50 million, capitalizing on what they perceive as attractive valuations in the secondary market. This strategy is influenced by their evaluation of current market conditions, hyperinflation, and rising interest rates.

In response to the coverage, Dr. Najam Kidwai, co-founder and managing partner of C1, clarified, 

"C1 did not authorize this article, and we have not met with either company directly as of this time."

This statement underscores the importance of accuracy and verification when reporting on strategic moves within the cryptocurrency venture capital landscape.

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