An Overview of China’s Blockchain Investment and Financing Report in 2019 by Rhino Data

News / 19.01.2020

Recently, Rhino Data published a report concerning blockchain investment and financing in 2019. The report was released in collaboration with Xinhua Finance. The report includes a list of startups related to cryptocurrencies in China getting funding.

As per the report, in 2019, the number of investment and financing deals recorded was 245, and there was an aggregate of 3.5 billion USD in investments by some. The value is approximately half of what got recorded in 2018. Of all the investments, only 43% were for early-stage investments.

The renowned investment areas were blockchain news or market intel exchanges and DeFi.The report claimed that traditional VCs did not lead last year as most investments were from emergency cryptocurrency funds. The pioneer blockchain company to experience a public market exit was Cannan Ipo’d. The cities that attracted other blockchain startups were Beijing, Shanghai, Shenzhen, and Hangzhou, while second-tier cities were improving.

Further Analysis of the Rhino Data Report

Traditional industries like exchanges, including Bitfinex, mining, and financing platforms based on blockchain, got included in the leading ten firms that obtained the highest funding. Other firms had a gaming startup and an e-commerce startup. Although the DeFi sector attracted numerous cryptocurrency enthusiasts, no startups brought forth a leading ten-year winner.

Excluding exchanges and mining firms, the majority of those startups are still striving to seek a real value proposition. The blockchain funding picture of China got influenced by Chinese regulators’ sudden approval. Before China’s president endorsed blockchain, several Chinese entrepreneurs chose to launch their startups outside the country, even though they majorly serve customers in China.

Nevertheless, the endorsement led to the emergence of firms like Huobi, setting up shop in mainland China. Additionally, China’s blockchain movement will likewise motivate technology giants like Tencent and Alibaba to do something about it. However, China keeps allowing blockchain and not cryptocurrency, only investments backed by the government will appear in the future Rhino expert.

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Born in Bucharest, Marius is the founder of Crypto Adventure. Since his first contact with Bitcoin and cryptocurrencies, he never stopped believing that they are one of the most important innovations of our time, which will forever change the way business is done.