China has seemingly lost its position of power in the cryptocurrency industry. The nation-wide trading ban on cryptocurrencies has caused a significant lack of interest. Some blockchain VCs have bold plans for the foreseeable future.
The year 2018 is one most cryptocurrency and blockchain enthusiasts will gladly forget. There was little to no excitement all year long. Bitcoin and altcoin markets all bled value every single day. For blockchain firms, things were as troublesome.
Chinese VCs eye Blockchain
This is especially true in China. Despite a lot of blockchain VC firms focusing their attention on this region, as much as 90% of them left the Chinese market altogether. That situation is now slowly improving for the better.
The renewed push into blockchain by the Chinese government is partially the reason for this change. It appears the government is now committed to making blockchain work. How that will play out exactly, remains relatively uncertain.
In recent weeks, China approved a new law that would boost the adoption and research of blockchain. It appears most of the efforts will focus on upgrading and streamlining existing governmental services. This will allow multiple providers to compete for contracts with the Chinese government.
As this competition heats up, VCs are also coming back. A lot of venture capital firms will try their hand at blockchain once again. It has now become easier to raise money for some. That in itself is a crucial aspect of any current and future blockchain R&D venture.
These early signs of recovery are promising. However, there is no “buzz” like there was prior to 2018. It will take a while until that level is achieved again, if ever.