2018 was a tough year for the crypto-market, filled with scams, Hacks, raids, falling prices, and much more. Until the beginning of 2018, many thought that the crypto market in 2018, at last, reached the Mainstream. Some say that this is the inevitable price correction, which was necessary, while others say that crypto-currencies will fall to 0, or disappear. Falling prices have all taken, miners, investors and Start-ups. Start-ups are particularly affected, as many investors are losing hope that their investment can pay off, and your Investments for the crypto area so to reduce or completely set. This has brought many Startups are in a precarious Situation because of the lack of financing, the funds run out and you need to reduce the size or your business completely give up.
In contrast to normal businesses, start-UPS work with a different overall concept. Many of them don’t even have a finished product, you will only remain an idea. This makes them a risky endeavor, but the potential success of these Startups makes it attractive for investors to invest in this. Most Start-ups are in the initial stage is not profitable. This makes them dependent on funds from Venture Capital and other forms of investors, so that Startups can bring no funds, pose a real Problem. The current lull in the crypto-Startups is due to the fact that the high market volatility has made investors nervous. Investors are always things you can predict like. Since many of these Start-ups were a part of their funds In crypto-currencies, reduced their capital with each Dollar of the crypto market loses value. This is one of the reasons why a lot of crypto-Startups will not survive this bear market. Most of the Startups are bringing in no money, you are dependent on these funds, their operations, and many force you to close.
Venture capitalists are a class of investors, which increased during the start-up Revolution. They specialize in high-growth markets, and invest with high risk and the intention to achieve high profits. The crypto market in the past was for many of them a favorite. Crypto was new, grew up and had to explode the potential to be, but that they have fallen greatly in the meantime. Investors are skeptical of the returns and many have already given up hope that the market will recover in the near future. This could be a unique opportunity for many long-term investors who see the current Crash as a simple setback on a long path to success. In the current market situation, investment in many of these Startups will be a good business, the lots of can not resist.
Most of the investors and founders of start-UPS cash in during the IPO. Sell your shares and take the money you get as a reward for the hard work and the risk that you have worn for years. In crypto Startups are no IPOs in the rule, but ICOs, But ICOs can be from day to day more difficult, because the regulatory authorities to exert more and more pressure on ICOs, which makes it almost impossible for them, capital on ICOs. Also, IPOs do not come to the present state of the markets in question, so that investors have no other choice than to hold their shares longer than expected. You have to remember that VCs invest in Startups to make a lot of Profit, because the prospect of IPOs is not in the near future, hesitate to many venture capitalists in crypto start-UPS.
What does the future hold?
Although 2018 was a rough year for crypto, lately, positive news emerged. Despite the price decline, the number of users has doubled compared to the beginning of this year. And in spite of the current crash, to open more and more countries, such as Japan and Thailand for crypto, and thus improve the investment opportunities significantly. It is expected that technical problems such as scalability, due to the inflow of Blockchain developers soon get a grip. The decline in investment from venture capitalists is due to a change in investment behavior that you practice in all industries. You no longer focus on Start-ups in the initial phase. Banks and large companies are striving to implement crypto in your own business. All of this enthusiasm could ultimately lead to in the near future, the Mainstream adaptation of the crypto-currencies. The most long-term investors and enthusiasts hold still, and we are optimistic that crypto has a promising future.
Disclaimer: Because of the buying and trading crypto-currencies with a significant risk of loss goes hand in hand, we speak of crypto Ticker not a recommendation to buy from. Please inform yourself thoroughly, comprehensively and, above all, independently from various sources that you trust before the acquisition of a crypto-currency.
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