Virtual Currency Investment Into Crypto Startups- Part 2

Read more on the investments in Cryptocurrency startups. You can be enlightened on quite a few possible matters.

Continuing From The Earlier Post

The interesting fact about the mix is its diversity as plenty of mainstream investors among them are as well as many generalist accelerator programs similar to Techstars and Plug and Play where for every Andreessen Horowitz on the list, many more vertical-specific venture firms are seemingly gone all-in on blockchain technology. All these include the likes of Digital Currency Group, Blockchain Capital, Node Capital, Medici Ventures, Digital Finance Group, and Polychain Capital that are ranked simply at the top of a list of hundreds of other investors. 

Whereas How Much Is Being Invested As Well As Which Are The Countries Those Are Leading The Way

There are essentially two main features that stand out from the rest that are venture fundraising activity in blockchain and blockchain adjacent companies highly concentrated in just a handful of countries with the US leading the way and a small but growing percentage of companies choosing to locate themselves in countries with friendly attitudes toward blockchain and cryptocurrency innovation.

Among these, the two that stand out are Singapore and Switzerland where each of which is home to at least four percent of the startups that raised venture funding over the last 14months. This comes as, throughout reporting on other stories, it was learned from investors and entrepreneurs that many Asia focused blockchain companies and investors in Singapore and Hong Kong are increasingly attractive domiciles for Chinese firms leaving that country in the wake of regulatory crackdown. As also Japan and Malaysia are popular locales in Asia for blockchain companies and funds in part thanks to permissive regulatory environments.

The same is the case in Europe, where Switzerland has been particularly progressive as it comes to clarifying policies around cryptocurrencies as well as blockchain technology with the CryptoCon was the chief revenue officer Brent Traidman at Zurich based mobile wallet maker called Bread referred to the country as the crypto valley. The financial authority of Switzerland issued specific guidance to companies looking to raise capital in ICOs.

The ultimate result is that as long as the regulatory environment for cryptocurrencies as well as other blockchain assets remains somewhat cryptic, in the US, American crypto entrepreneurs are certain to leave the country for the reason of clearer legal frameworks abroad.

Notes On Methodology

Creating a list of companies they included Bitcoin, Ethereum, blockchain, cryptocurrency, and virtual currency categories while taking a look at the list of companies having raised capital via an initial coin offering as finally another list was creates using those keywords in addition to digital currency and utility token in the company’s descriptions. While it was then combined and de-duplicated the list produced a data set off just over 2,900 blockchain and blockchain adjacent organizations that are used in the analysis. Finally, at least for this article, there’s going to refer to these companies using some variation of that in elegant if quite an inclusive phrasing the blockchain and blockchain adjacent.

What This All Means

It is known to all that whereas the cryptocurrency’s greatest strengths are its pseudonymity there’s also a degree of decentralization and independence from trusted third parties like banks and central governments have made it a favored medium for money laundering, tax evasion, and other financial crimes. 

With its attractiveness to speculators, it has enhanced by a frothy market and the fear of missing out as the next big thing that has led to taking advantage of new and seasoned investors alike. On the report from professional services firm Ernst & Young, the key details come out which are covered by Reuters finding ten percent of capital raised in ICOs being lost to fraud, theft, and other malfeasance.

Here the factors combined with a desire to encourage the general public avoids plunging lots of savings into such high volatile assets pushing governments to regulate cryptocurrencies as it rolls off what is referred to as the collective backs of those crypto traders that is uncertain. The recent history thereby suggests that investors have short memories as it comes to bad news. Lately, it is important to remember that past performance has little bearing on future returns.

Finally, The Word To Conclude 

The crypto world is still not mined out exclusively. There is more to the mining process as well as the use of the crypto that helps in bringing the much-required attention from the experts in development and investment. Let it not escape the attention of newbies in the investment sector. Till then let’s keep the fingers crossed and watch the cryptocurrency space keenly with the help of expert advice.

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