Chinese blockchain projects raised $ 3.5 billion in 2019
The Chinese investment platform Rhino Data, in collaboration with the pro-government publication Xinhua Finance, presented a report on investments in the blockchain industry in 2019.
In this segment, in the Chinese blockchain space, analysts managed to count 245 investment transactions totaling about $ 3.5 billion. Both values fell by about 50% compared to 2018, but turned out to be significantly higher than in 2017. It is expected that the recently taken course by the Chinese leadership on the development of the blockchain will have a positive impact on the results of the current year.
Over time, there has been a decline in investment in projects at an early stage of development – in the total volume of investments, they accounted for 43%. In the second half of the year, strategic investments and acquisitions of third-party companies were more in demand.
The most popular areas for investment were blockchain news resources, market data platforms, exchanges, and decentralized financial services (DeFi). The companies that received the largest volumes of financing included exchanges (Bitfinex, which allegedly raised $ 1 billion through the sale of LEO tokens), representatives of the mining industry (Canaan, which successfully carried out an IPO in the USA) and financial platforms on the blockchain. It is noteworthy that companies outside these sectors are still unlikely to offer a product that would interest investors.
Traditional investors chose not to show violent activity in 2019, and most of the funding came from newly formed cryptocurrency funds. However, the situation again began to change towards the end of the year after Xi Jinping’s talk about the importance of blockchain development.
In addition, there is a tendency to return Chinese blockchain entrepreneurs who previously left the country amid a hostile attitude of the authorities towards cryptocurrency trading to their homeland. The largest number of transactions to finance blockchain projects takes place in Beijing, Shenzhen, Hangzhou and Shanghai. Also, smaller cities begin to join them, the administration of which seeks to support the national program.
Huang Renxun, CEO of Nvidia, has publicly stated that there is a problem of excess inventory and they are selling video cards at a lower price. Graphics card manufacturers including ASUS, MSI, GIGABYTE, ASRock, Huanxun, Leadtek, Biostar and Chengqi will also continue to face the pressure of price cuts and stock adjustments in the second half of the year.
Vitalik expressed support for Optimism's governance structure and the OP gas proposal. The Ethereum co-founder has often advocated that projects do away with coin voting in DeFi and DeGov, as this would give smaller holders a chance to actually participate in governance. Ethereum co-founder Vitalik Buterin supported Optimism's new governance structure, noting that proposals such as using the OP token to pay for gas demonstrate a "clear representation of non-tokenholder interests."