Nowadays, with the amount of information we leave online, data safety is an issue that is a concern for pretty much everyone. Cryptocurrency aids in tracking one’s money, and blockchain keeps all the data public, helping users to make sure no information they receive is fraudulent.
Many leading projects, especially in the banking industry, use blockchain technology. It aids in making transactions free (or at least not as expensive) around the world. In this article we’ve rounded up five best blockchain and crypto startups to watch in 2020.
What to Expect From 2020
One of the most long-awaited events of the next year is the Bitcoin halving. It may flip the game in the crypto industry, so projects that are about to launch are the ones to watch. These are Facebook’s Calibra and Telegram Open Network. How will their debate with SEC end? We’ll find out in 2020.
In 2019, the White House made some comments on Bitcoin and cryptocurrencies. Facebook’s Libra helped Congress dabble into the cryptocurrency market. In 2020, we may see the final decision on digital money being made.
One more thing to wait for in 2020 is the development of DeFi. It stands for ‘decentralized finance’ and means a new way for people to earn money. Will it become a new significant part of the global economy? We’ll see in 2020.
Startup Trends in 2019
Until 2018, startups whose technological core was based on blockchain raised funds mainly through the initial placement of coins or ICO (Initial Coin Offering). Not only it was relatively easy for startups to receive investments, but also it did not require them to prepare thoroughly or accept responsibility in case of failure. With that, and the attractive prices investors could purchase crypto at during ICOs, the process has become an attractive investment tool for all of its participants.
According to ICORating research, half of the projects that announced an ICO in the second quarter of 2018 could not even raise $100,000. 55% of all ICOs for this period failed. The fees for blockchain projects during the ICO continue to fall along with the number of successfully completed token sales (ICOs that collected soft caps).
In May 2018 the total amount of attracted capital of more than 150 ICOs amounted to more than $1.9 billion, but over the next few months it fell rapidly. In October, total investment amounts fell by almost 10 times compared to the May figure, and amounted to only $236 million, with the number of projects not exceeding 30.
This year, new players appeared in the financial industry – cryptocurrency venture funds specializing in blockchain projects, such as Pantera Capital, Blockchain Capital, Fenbushi Capital. They possess not only large capital, but also expertise in the field of innovative startups.
Such funds analyze in detail the business model and the technical part of the project, identifying teams of outright scammers and startups with vague prospects for monetization.
The industry trend for blockchain projects is the refusal to raise funds through ICOs in favor of venture investments. The crowdsale participants were unqualified investors, many of whom lost their money and could not influence or support the project. Funds also have experience in using blockchain technology and are able to help the team in product development.
Top 5 Cryptocurrency Startups to Watch in 2020
Here are five crypto startups that deserve your attention.
SwapRadar is a cryptocurrency exchange aggregator. The team looks for the best rates in multiple sources and then gives all the information to users. SwapRadar is integrated into the largest and most reliable cryptocurrency exchanges.
To execute an exchange at the best rate possible SwapRadar trading algorithm searches for bids and asks on various crypto exchanges, then selects and suggests the best available rate and displays it on the website. The rates remain approximate until the transaction is actually made on the blockchain. Hence, the exchange rate at the time of the transaction may differ slightly from the estimated rate that you see when you begin the transaction.
The project was developed by crypto pioneers and experienced developers. Registration is not required. SwapRadar makes it easy to find the best offer to buy crypto.
#2. Telegram Open Network and Gram Cryptocurrency
At the end of the year, the US Securities and Exchange Commission (SEC) repeatedly appealed to the court with a request to receive evidence from John Hyman, whom Pavel Durov called Telegram CEO, the chief investment adviser of the company and the person involved in the distribution of Gram tokens.
The documents contain new details of Hyman’s correspondence with investors of the Telegram Open Network (TON) blockchain project. So, the Telegram investigation continues into 2020. We will find out if the cryptocurrency can enter the market next year.
Lendonomy is a peer-to-peer platform for young people which helps them to lend and borrow money (and more). If you have money to share, you can give a loan with Lendonomy for those who need one. It is a social network that aims to educate young people about money management and the tools associated with it. All in all, Lendonomy is a multi-tool that helps to keep finances in order.
#4. Salt Lending
SALT is a blockchain-based lending platform that uses the SALT cryptocurrency as collateral to provide loans to users. Salt users can freeze their crypto tokens as collateral and receive cash in exchange for crypto assets to make payments.
In addition, lenders can make their own terms, and in the case when borrowers find an appropriate plan, they will be able to request a loan and provide their cryptocurrency as collateral. This is one of the few projects that uses crypto assets in such a way.
Ambrosus is the next generation decentralized Internet of Things network.
The main element of the Ambrosus network is AMB-Net, which tracks and transmits data from unique sensors on the status of goods and medicines. The AMB-Net blockchain uses smart contracts to record data and independently execute contractual relations with automatic dispute resolution. The project also offers developers modules for creating stand-alone decentralized applications and protocol updates.
The network is planned to be used in the food and pharmaceutical industries, using smart sensors with their transfer of information to registries and databases. This will ensure completely transparent delivery processes and guarantee the quality of the goods.