10 Cryptocurrency Startup Companies You Should Be Watching
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Cryptocurrency startup companies have boomed in the last few years and some have grown at a rapid pace and become big names.
According to Crunchbase, many cryptocurrency startups started around 2016, the majority of which are for-profit and work in financial services, payment processing and software.
Many cryptocurrency startups will likely fail. It’s a well-known fact that most small businesses fail in the first few years, and cryptocurrency businesses are risky to get involved in.
In fact, many banks do not allow companies that deal with cryptocurrency to open bank accounts with them.
Some, such as Billy Bambrough, believe that there might be a slowdown in cryptocurrency investment as Y Combinator’s top 100 businesses by valuation have only featured two cryptocurrency companies in the last two years.
Those two companies are the cryptocurrency exchange Coinbase and SFOX, a crypto prime dealer for institutional and professional traders.
In this article, we’ll look at the most interesting cryptocurrency startup companies that you should be watching.
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Top 10 cryptocurrency startups
Keep an eye on them all!
Cobo is a cryptocurrency startup that is primarily a wallet service that supports a variety of different coins.
Using the Cobo Wallet, users can grow their cryptocurrency through PoS mining.
Another key product Cobo offers is the Cobo Vault, which can securely store cryptocurrency from a range of different attacks.
So secure, it even has a self-destruct feature that allows you to wipe away your public and private keys if someone manages to get access to them.
Cobo is led by Discus Fish, a Chinese pioneer in cryptocurrency who supposedly wrote the first-ever Chinese-language mining tutorial.
On top of that, before Cobo, Fish also co-founded F2Pool, one of the world’s largest mining pools currently in operation.
In October 2018, Cobo raised 13 million.
Javvy is a cryptocurrency startup that is attempting to replace all cryptocurrency exchanges and wallets, which is no easy task.
They are creating a universal wallet that can support all cryptocurrencies as well as a decentralised exchange.
Javvy does this by being connected to multiple exchanges, eliminating the need to open multiple accounts with different exchanges.
They have also created the Javvy utility token, which can be used to get 50% off on fees.
In Javvy’s ICO, they managed to raise approximately $7 million by the 30th April 2019.
Founded in 2017, Finhaven and is a Vancouver-based cryptocurrency startup that plans to create digitised assets.
They primarily plan to create an equity and debt issuance platform using the Ethereum blockchain.
On top of this, Finhaven will also use Ethereum to set up secure wallets and create an audit log of transactions and create unique tokens for each digitised asset.
Finhaven is also planning to use Bitcoin for its remittance layer, where investors can accumulate Bitcoin in return for what they invested.
Currently, Finhaven only serves customers in Canada, however, if it is successful, this may change.
In total Finhaven has managed to raise $7.9 million Canadian. The majority of this came from Dunamu & Partners, who invested $5.13 million.
Cryptocurrency startup SpectroCoin is also behind Bankera, a cryptocurrency lending service.
They aim to essentially become a bank and bridge the gap between traditional banking and cryptocurrency.
Bankera plans to use blockchain technology to limit the number of counterparts involved in banking, making it easier and cheaper to make payments.
They want to become the one-stop place for all financial services, which is a big goal and use blockchain technology to offer unique services.
SpectroCoin also offers a Bitcoin debit card that can be used in over 30 million cash machines and more than 25 million shops.
By operating as a decentralised network, they claim that they can offer better pricing and speeds than their rivals.
Storj’s primary product is its Tardigrade cloud storage which encrypts your files, splits them into pieces and distributes them across nodes.
By joining Storj, you can become a node on their network and rent your unused storage space on your computer to others who may need it.
In 2017, Storj ran an ICO and managed to raise $30 million in Bitcoin and Ethereum.
ICO participants received Storj tokens in return. According to CoinMarketCap, at the time of writing Storj is the 162nd largest cryptocurrency by market cap.
Cryptocurrency startup Harbor is involved in tokening securities using blockchain technology. By doing this, they are making faster and easier to buy and sell securities.
The focus of the company is largely on equity and startups, however, they have also looked into tokenising real estate, investment funds and even pieces of fine art.
In a sense, owning a tokenised security is very much a traditional stock, but by tokenising it and allowing for liquidity, they should be able to attract more investors.
It is like making stocks work in the same way as ICOs, only the major difference will be that they are fully compliant.
This may make buying investment products easier for everyday people and enable them to profit from this.
Harbor was founded by CEO Joshua Stein and raised $40 million when it started in 2017 and then another $28 million in April 2018.
Cryptocurrency startup Circle started as a messaging app but acquired the Poloniex cryptocurrency exchange which was their first endeavour into cryptocurrency.
They are a direct competitor to exchange Coinbase and also allow users to send fiat money through their virtual wallet.
Circle also created the Circle invest app, a mobile app specifically for investing in cryptocurrency and has over 8 million users, more than 60 assets and $200 billion in trading volume.
Raised $110 million in 2018 in a funding round and estimated to be worth more than $3 billion.
The biggest investment came from Bitmain, one of the largest cryptocurrency mining groups as well as Digital Currency Group. Another key investor is Goldman Sachs.
With Coinbase, Circle created stablecoin USDC.
8. Digital Currency Group
Founded in 2015, Digital Currency Group is perhaps the largest cryptocurrency startup investing in cryptocurrency businesses in the world.
Digital Currency Group was created by Barry Silbert who previously founded SecondMarket (now known as NASDAQ Private Market).
Today, Digital Currency Group has invested in over 145 companies and is considered the most active investment company of cryptocurrency.
Silbert started investing in Bitcoin companies in 2013 and has never looked back, believing that one day Bitcoin may replace gold.
He also believes that cryptocurrency speculation is a good thing as it builds the ecosystem and liquidity needed for cryptocurrency to be accepted by everyone.
One of the biggest companies the Digital Currency Group has invested in is Coinbase.
Coinbase is the second-largest cryptocurrency exchange around today, has been around since 2012 and claims to be the most trusted exchange.
Though it offers fewer cryptocurrencies in regards to some of its rivals, it does support all major cryptocurrencies. Coinbase would perhaps be doing better if US regulations were not so strict.
Coinbase was founded by CEO Brian Armstrong and Fred Ehrsam.
Aside from the exchange, Coinbase also offers wallet services, advanced trading for professionals and APIs for developers and merchants to accept cryptocurrency.
Coinbase in collaboration with Circle is also the creators of USD Coin (USDC), a stablecoin tied to the price of the US dollar in a similar way to Tether, claiming that all USDC is equally backed in US dollars.
As of today, Coinbase has over approximately 13 million users and is one of the most well-known cryptocurrency startup companies.
Founded in 2017, Binance has become the largest cryptocurrency exchange in the world with a huge list of cryptocurrencies available to trade and are by far the most successful cryptocurrency startup.
Originally, Binance started in China, but after they implemented stricter rules on trading cryptocurrency it moved to Japan.
However, Japan also put into place stricter rules on trading cryptocurrencies as well and soon Binance moved its headquarters to Malta where it is currently.
Binance is headed by CEO Changpeng Zhao who is by far one of the most influential persons involved in cryptocurrency today.
Zhao has immense experience in cryptocurrency and trading, before Binance Zhao previously founding Fusion Systems, which built high-frequency trading technology for brokers.
He also worked as CTO for OKCoin and previously worked at Blockchian.info as part of the cryptocurrency wallet team.
Binance also launched Binance Coin, a utility coin which allows traders to buy cryptocurrency at a discount rate when used.
Why should traders watch cryptocurrency startups?
The development of cryptocurrency startups is vital to cryptocurrency traders, and not just because they can be assets to invest in.
Simply put, the more cryptocurrency is accepted and used the more valuable it becomes and cryptocurrency startup companies are one way to achieve this.
On top of that, the more people using a cryptocurrency, the more liquid it becomes. That means it is easier to buy and sell.
Traders need liquidity, without it, it is almost impossible to make a profit from trading.
Cryptocurrency traders should always be on the lookout for cryptocurrency startups and track how the technology is evolving.
If Barry Silbert is right, the development of more cryptocurrency businesses and speculation will likely be a good thing for cryptocurrency adoption.
Cryptocurrency traders should especially keep their eyes peeled for any changes affecting Binance and Coinbase.
If you remember anything from this article, make it these key points.
- The majority of cryptocurrency startup companies will likely fail. Unfortunately, cryptocurrency is still a very risky industry.
- Many of the top cryptocurrency startups are developing exchanges and/or wallets.
- Digital Currency Group, Coinbase and Binance are three of the biggest cryptocurrency startups. Their success has made them well-known brands.
- Traders should keep an eye on how cryptocurrency startups are developing. The more businesses grow, the better for adoption and therefore adoption.
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