The ups and downs of blockchain startups and how to invest in the right one

By Stan Peterson
Published October 18, 2021 Updated October 18, 2021
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The ups and downs of blockchain startups and how to invest in the right one

By Stan Peterson
Published October 18, 2021 Updated October 18, 2021

Since its inception in 2009, cryptocurrencies have had numerous booms. Many people did not believe that it would revolutionize the way in which people are trading, investing, and using money in their day-to-day activities. 

Following the spike in 2017, many entrepreneurs rose to the top, while others were solely motivated by the desire to defraud as many investors as possible. In 2021, it appears that the pandemic situation that began in 2020 aided large businesses in the digitization process.

As a result, the crypto space has created an ideal environment for entrepreneurs looking to start something fresh and new, experiencing the crypto space. However, even though the major startups that have been founded had around a life span of 4-6 months, about 80-90% of the start-ups created have experienced this situation and failed within that time frame.

The ups and downs

Talking about the ups when it comes to the growth of startups into the crypto market, it is much easier to do so because there is no need to seek out a loan. There are various ways to raise funds, and investors will be drawn in quickly if the platform is unique. 

The fact that it is built on the blockchain system allows the creation of a bank-free project and facilitates faster transfers and without using a third party. 

Apart from that, a big down is when startups are new on the market, it is much easier for larger corporations to steal ideas. The big firms integrate the new ideas into their platform and by doing so it takes other people’s initiative, and as a result, it will ruin the start-ups.

Another disadvantage is that the teams behind start-ups must ensure that their ideas are more than temporary, if not the project won’t last. To become known and attract many investors to the project, they must do some advertising.

Otherwise, the business will not grow, or it won’t be easy to increase its customers. But the truth is that there is enough room in the crypto space for everyone to focus on different areas, such as ICOs, DeFi, NFTs, and various other subjects, and develop them.

How to make the right decision ?

Even though they have a lot of initiative, it might be difficult for investors to make a solid decision when it comes to startups. Although most of the people behind the project may have good intentions, a few enterprises are out to defraud investors.

Some platforms will ensure that investors receive the proper project to invest in, and startups get a means to boost their business to make the right option, even for startups, and make their way to the top. Escrow Protocol is a blockchain-based WEB3 platform that allows users to connect investors and project creators safely and securely.

A place where investors can fund startups while maintaining full control over their investment. Aside from that, a startup project’s life duration can be extended by taking part in the initiative; in conclusion, it’s a win-win situation for both sides.

Conclusion

In terms of new ventures and investments, the blockchain sector has a lot to offer. Is it a good place for new businesses to start, and not just to create a space for those who want to make a change in the crypto world.

Aside from that, as technology advances and digitization approaches, the crypto area offers limitless opportunities to create an ideal environment for customers, entrepreneurs, and investors.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Stan Peterson
560 Articles
Being an active participant in the Blockchain world, I always look forward to engage with opportunities where I could share my love towards digital transformation.

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