According to a new report from a reputable blockchain and Web 3.0 venture capital firm, Outlier Ventures, Blockchain startups managed to raise a total of 822 Million USD from 279 separate venture capital deals during the first half of 2019.
The report, which is also known as the State of Blockchain Q2 report provides insights of 2019 blockchain investments and market trends. According to the findings from the report, 159 deals out of the total 279 deals that were related to blockchains were seed-stage ones. What this means is that the entrepreneurial spirit in the cryptocurrency sphere is still going strong despite the falling share prices.
The Slow Death of Building Proofs of Concepts and the Adoption of Open Source Projects
According to the findings of the report, new startups and traditional enterprises that are venturing into the blockchain industry are increasingly embracing open-source ethos rather than building a proof of concepts. What these companies do when they embrace open-source ideologies in their system is contributing to the overall growth and traction of the crypto community.
In this regard, the State of Blockchain Q2 report cites the largest bank in the US, JP Morgan and one of the top global auditors Ernst & Young as some of the companies who are embracing this new wave. The sample companies, Target, JP Morgan, and Ernst &Young each produced their open-source codes for the last 6-months, underscoring blockchain use in their operations.
As you would know by now, traditional venture capital investment in blockchain and cryptocurrency technology witnessed a threefold upsurge in 2018 as industry players managed to raise 3.9 billion USD in the last quarter of 2018. It is imperative to note; three more billion need to be raised in the next 3-months to match last year’s numbers.
At the same time, the fluctuations trends of venture capital investment in the crypto sphere have somewhat gone down, that’s what Lawrence Lundy-Bryan, Outlier Ventures’ Partner and Head of Research believe.
“In comparison to 2018’s enormous bull market performance, the number of large venture capital being raised within the blockchain ecosystem is diminishing in number. However, all hope is not lost as crypto exchange platforms continue to be a strong attraction site for investors as Bithumb crypto exchange alone managed to raise 200 million USD.”
Lawrence adds further,
“Another macro-trend the market is currently witnessing is the direct investments into protocols in a tradeoff for both token and equity. So far, the public attention is being drawn to Exchange Listings that are in the form of Initial Exchange Offerings (IEOs). The IEOs are a resurgence of the ICO model where exchange platforms offer near-instant liquidity to holders of virtual assets through a listing.”
Other Crypto News Hitting the Headlines
The inflection point for the cryptocurrency and blockchain community might be here with us with the announcement of Facebook’s Libra cryptocurrency and blockchain technology. The news of Facebook imminent entry into the digital currency world could be one of the biggest stories in the cryptocurrency sphere.
According to reliable sources, Facebook has over 100 different companies contributing 10 million USD each to support the project. At present, Facebook is working round the clock to develop their default cryptocurrency that some pundits refer to as a more centralized form of virtual currency that will be tailor-made for the global masses.
While controversies of data misuse and privacy concerns continue to haunt the social media giant, Facebook’s public commitment and professionalism promise some much-needed reforms in the crypto space.
According to the CEO of Outlier Ventures, Jamie Burke:
“Facebook’s Libra initiative is dividing the crypto industry. On the one hand, Facebook and their partners are bringing the much-needed legitimacy to the market following the ICO madness and the insane promise of a billion users. On the other hand, due to its bad past of mishandling user information, Facebook cannot be trusted in this sector as anonymity is the backbone of cryptocurrency.”
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.