Europe Coming Out on Top in Crypto War
Europe is quickly becoming the cryptocurrency hub for the world, with a large amount of funding from the continent being invested in crypto-based projects. This year has so far seen the sales value in Europe close to overtaking those of the US and Asia combined. Cryptocurrency continues to enjoy success in avenues such as retail and online trading. We'll have to wait and see what other projects are developed on the back of European funding.
A venture capital fund known as Fabric Ventures that invests in decentralised network and blockchain projects recently penned a report that detailed the possible causes behind the spike in European ICO funding. It referred to positive regulatory revelations, a rise in development activity, and the separation of EU economies.
Europe winning the ICO funding battle
The report asserts that European ICO fundraising reached approximately $41bn in 2018 alone, close to twice the $2.3bn that Asia has raised so far, as well as being higher than the US' $2.6bn.
One of the major factors behind a rise in worldwide ICO funding is more “do no harm” regulations, from Europe in particular. The report states that ICO funding in Asia could potentially be hindered by regulatory authorities in Singapore and Hong Kong, two key Asian crypto-hubs that regard cryptocurrencies as security products, subjecting them to increased regulatory scrutiny. This is in comparison to multiple EU nations that are gaining ground quickly as crypto-hubs, as a result of non-restrictive and light regulations.
The findings from the report will be interesting to a number of parties: crypto traders for one. Crypto trading is huge right now and is one of the more popular categories of trading, alongside the likes of forex trading and CFD trading. Each of these styles can be traded via online trading platforms like IG, which allow traders to minimise the risks associated with investments of this kind.
More funding, more talent
There are 5.5mn developers in Europe, compared to the 4.4mn in the US, says Stack Overflow. There are also twice the number of STEM PhDs coming out of universities in Europe than there are in the US. While ability has never been in question, the best talent was being employed by banks; until the 2008 crash, that is. Thanks to the funding, however, the talent no longer needs to seek the support of venture capitalists in the U.S.
The report points out that two of the smallest countries in Europe: Malta and Gibraltar are receiving approximately $300mn in ICO funding. While they have a strong reputation when it comes to cryptocurrency, they have some way to catch up with larger countries, which are attracting most of the ICO funds.
France and Switzerland on the offensive
Economy minister Bruno Le Maire insists that France will capitalise on the success of the blockchain and intends to be an international ICO hub. The UK has developed its own crypto assets task force, while Switzerland has set out similar intentions to France.
ICO fundraising has enjoyed a successful year for ICO fundraising in spite of the cryptocurrency bear market, with 88,000 ICOs in total, raising more than three times the amount raised in 2017.
