Brought to you by Global Blockchain Industry Overview and Prospects (2018H1) – published by Huobi Research of Blockchain Application. Download it below.
Crypto assets experienced its third bull market in 2017. This time Bitcoin was no longer the only eye catcher, and a great number of ERC20 tokens were created and flourished. A paradigm shift in the crypto assets market, from consensus on peer to peer cash like Bitcoin to consensus on smart contracts, is forming. Entering 2018, the market started to cool down, until mid-April, along with the super nodes election campaign from some projects using DPoS consensus, the crypto market stabilized and started to rebound in a short run. According to our sentiment survey, global investors are still optimistic toward the market in the second half of 2018, with 71.4% of the responders believe the market cap will increase more than 30%.
Crypto asset crowdfunding exploded in 2017. The funding amount was 23 times that of 2016. In 2018, up to 67% of the new crypto assets we followed were selling below issuance prices, however, a few projects still delivered great performances, such as Zilliqa, Tomochain, Bluzelle etc. We expect more capital to center around quality projects. In addition, the first DAICO was successfully completed in 18H1. New funding models are expected to be more popular in the future. Besides, projects in the US will tilt to regulated funding, following Reg A+ and Reg D.
There will be 6 rationales for crypto market. Penetration: Crypto finance will penetrate traditional finance; Application: Only Use cases + Blockchain could set the market on fire; M&A: Acquisition of high-quality internet applications through crypto assets will happen; Users: Blockchain user base will keep growing, pushing up market activity; Generation: Average age of users will move up; Gender: More females are expected to enter the market.
Regulations: US SEC announced that most of the ERC 20 tokens may be securities and started to strengthen the regulation using securities market framework. We expect more countries to follow US as an example. Meanwhile, self-regulatory organizations were set up in Japan and Korea. Future picture will become a combination of centralized regulation and self-regulatory. However, joint regulation won’t come out in short run.
We divide the blockchain industry into five sectors: Infrastructure, Platform, Middle layer, Application and Services. In 2017, main competition fell in Platform sector. Attentions should still be majorly paid on Platform layer and Middle layer in 18H2.
Technology: Current blockchain networks cannot support commercial applications at large scale. Scalability, privacy, and interoperability are still bottlenecks. A lot of new solutions emerged, and some distributed ledger technology other than blockchain also appeared, such as DAG and hashgraph. Technology improvement will even accelerate in near future.
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Also kindly download the presentation slides (in PDF) below, delivered by Mr. Hubery Yuan, Director of Huobi Research of Blockchain Application, during the Blockchain Festival Vietnam on 24 May 2018.