Blockchain corporations raised US$1.eight billion by way of 343 offers in the course of the first half of 2018, a brand new document for enterprise capital (VC) funding within the sector that highlights hovering demand from VC corporations, based on a new report by blockchain VC agency Outlier Ventures.
The development has been largely pushed by the surge in VC “mega rounds” of over US$100 million. These embody Bitmain’s US$400 million Series B round in June that valued the corporate at a whooping US$12 billion. Bitmain plans to use for an preliminary public providing (IPO) in Hong Kong in September. Circle, a cell funds and cryptocurrency buying and selling firm, raised US$110 million in May at an almost US$three billion valuation. Circle acquired common cryptocurrency buying and selling platform Poloniex in February for reportedly US$400 million.
Another key development this yr is the surge in merger and acquisition (M&A) exercise. US cryptocurrency buying and selling firm Coinbase has been among the many most energetic, buying seven corporations this yr thus far, particularly Memo.ai, Cipher Browser, Earn.com, Paradex, Venovate, Digital Wealth and Keystone Capital, according to Crunchbase. Other notable M&A offers in the course of the first half of 2018 embody Tron’s acquisition of BitTorrent for US$126 million in final month, and Binance’s acquisition of mobile cryptocurrency wallet Trust Wallet.
The report additionally notes the rise of decentralized cryptocurrency exchanges. Idex, Bancor and ForkDelta, the highest three decentralized exchanges for Ethereum ERC20 tokens, collectively maintain 91% of the market however different smaller ones additionally exist corresponding to Kyber, Airswap, and Radar Relay, which lately raised a US$10 million Series A. One of the principle appeals of decentralized exchanges is that these don’t maintain prospects’ funds, positions or data, and solely serves as an identical and routing layer for commerce orders.
Meanwhile, a rising variety of corporates are entering into the cryptocurrency sport: Japanese messaging app Line launched its alternate BitBox in July, common inventory buying and selling app Robinhood built-in tokens into its choices earlier this yr, and Nasdaq CEO Adena Friedman has indicated interest in itemizing tokens on the alternate.
Another rising development is stablecoins, which permit buyers to carry and switch greenback, euro and different sovereign currencies pegged tokens between wallets with out the necessity for a banking middleman. Currently, there are greater than ten stay blockchain-based steady forex implementations with Tether main the market with a present market capitalization of US$2.7 billion.
Circle is engaged on the USD Coin, a stablecoin that can plug into Poloniex, and IBM and Stronghold launched a cryptocurrency pegged to the USD known as Stronghold USD on the Stellar blockchain community final month.