Chinese Blockchain Projects Raised $ 3.5 …

Chinese Blockchain Projects Raised $ 3.5 …

Chinese blockchain projects raised $ 3.5 billion in 2019

Chinese investment platform Rhino Data in collaboration with pro-government publication Xinhua Finance has released 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. Chinese leadership’s recent blockchain course is expected to have a positive impact on this year’s results.

Over time, there has been a decrease in investments 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 parties were more in demand.

The most popular areas for investment were blockchain news, market data platforms, exchanges and decentralized financial services (DeFi). The companies that received the largest amounts of funding included exchanges (Bitfinex, presumably raising $ 1 billion through the sale of LEO tokens), representatives of the mining industry (Canaan, which successfully completed an IPO in the United States) and blockchain financial platforms. Notably, companies outside of these sectors are still barely able to offer a product that would interest investors..

Chinese Blockchain Projects Raised $ 3.5 ...

Traditional investors opted to be quiet in 2019, and most of the funding came from newly formed crypto funds. However, the situation again began to change towards the end of the year after Xi Jinping’s speech on the importance of blockchain development.

In addition, there is a tendency for the return of Chinese blockchain entrepreneurs, who previously left the country amid the hostile attitude of the authorities towards cryptocurrency trade, to their homeland. The largest number of blockchain financing transactions occurs in Beijing, Shenzhen, Hangzhou and Shanghai. Also, smaller cities are beginning to join them, the administration of which seeks to support the national program.

Earlier, the Chinese authorities excluded cryptocurrency mining from the list of unwanted activities.

Chinese Blockchain Projects Raised $ 3.5 ...

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