If you are a crypto investor, it’s very likely that you will at one point want to invest in a crypto startup. You may have already had the chance to follow an Initial Coin Offering (ICO).
Right now, there are dozens of new companies releasing their own coins and tokens in the market in order for investors to be able to take advantage of them and get involved. These initial coin offerings can prove to be an incredible investment opportunity with high returns on investment (ROI) when chosen wisely. But participating in an initial coin offering isn’t the only way to invest in crypto startups.
In this post, we’ll explore five exciting blockchain startups that have been raising quite a lot of attention from crypto enthusiasts all over the world, and we’ll take a look at a few of the ways you can invest in a crypto startup.
Released in 2018, Solve.Care is a decentralized platform for healthcare and benefits management. Their purpose is to deliver “care coordination services” that go beyond what traditional insurance companies offer by providing their users with AI-based data analytics solutions on health care.
The platform allows its users to order a variety of medical and pharmaceutical services via the blockchain system. They can also view the updated patient’s health record in real-time as well as book appointments with doctors via the Care.Wallet App (available for iOS and Android). Various insurance providers have endorsed the company’s platform as it is a viable channel to settle insurance claims quickly and cost-effectively.
The company completed its token sale in 2018, raising just over $30 million from its investors. So if you’re passionate about revolutionizing healthcare across the world, Solve.Care could be a great addition to your crypto investment portfolio.
Carnomaly is the world’s leading automotive cryptocurrency company. We’re dedicated to bringing the power of blockchain to the automotive industry through our ecosystem of services that empower users to earn tokens for taking care of their car, purchase a vehicle using crypto, or invest in or utilize DeFi auto loans.
Users gain access to our fleet of blockchain-powered solutions by purchasing CARR; the ERC-20 token minted to fund the development of Carnomaly.io, CarrDefi, and CarrChain.
Becoming a member of Carnomaly’s automotive rewards system gives you more than just the satisfaction of investing in a crypto startup with real-world applications. It also gives you a simple, affordable way to purchase a vehicle with cryptocurrency, improve your own vehicle’s value with our comprehensive vehicle records repository, or even take out an auto loan leveraging your crypto assets instead of credit.
According to their website, Provenance is committed to a vision of “a world where citizens know the impact of products and can drive progress through what they choose to buy.”
Provenance is a “know your customer” (KYC) and origin verification platform that improves product traceability through the blockchain ecosystem. Provenance also helps companies to build trust with their customers via its data transparency tools that can help them to verify the origins of products. In addition, the blockchain-based company utilizes Internet of Things (IoT) sensors for supply chain efficiency. It offers an automated way for businesses to get up and running with blockchain technology.
Based in San Francisco, Provenance has raised $1.2 million over five rounds of funding. Digital Currency Group and Working Capital Fund are two of the notable investors to have contributed to this development.
If, like founder Jessi Baker, you’re frustrated with the lack of information available about the products we use and consume every day, or if you’re passionate about investing in women-led blockchain-powered organizations, Provenance is a crypto startup to watch.
Have you heard of NBA Top Shot? How about CryptoKitties? If you have, you have NFT startup DapperLabs to thank.
Recognized as a Non-Fungible Token (NFT) pioneer, DapperLabs has become something of a powerhouse in the space this past year amid the current NFT craze.
Its total funding hovers around $400 million and enjoys 1 million members and $700 million in sales. However, DapperLabs is said to be in the process of raising additional funding at a more than $750 billion valuation.
It’s a crypto startup investment to help you invest more intelligently in crypto startups. (How very meta.)
Stacked helps investors manage their cryptocurrency investments all in one place by connecting disparate crypto exchanges. While that might not sound revolutionary, Stacked has an edge on the competition. Users are able to invest in pre-built portfolios curated based on the portfolios of prominent investors or hedge funds. It also offers the convenience of seeing a consolidated picture of all of a user’s crypto assets.
How to Invest in Crypto Startups
There are a number of ways to invest in crypto startups beyond simply holding cryptocurrency assets in a digital wallet. Here are two of the most accessible and practical ways to get involved.
Invest in cryptocurrency with an exchange-traded fund (ETF)
An Exchange-Traded Fund (ETF) is a fund traded on stock markets that tracks the movement of cryptocurrency prices without actually holding any cryptocurrency. It consists of cryptocurrency derivatives that allow investors to leverage rises in cryptocurrency values or hedge against declines. Popular cryptocurrency exchange Coinbase announced plans to offer cryptocurrency ETFs back in March 2018, and new cryptocurrency ETFs have also been proposed by Wall Street’s VanEck and SolidX Group.
Invest in an Initial Coin Offering (ICO)
Initial Coin Offerings, or ICOs, are very similar to IPOs (initial public offerings). However, instead of investing money in shares, you’re actually buying digital coins from the company itself.
ICOs are advantageous because instead of paying an intermediary like an investment bank, you as the investor purchase the coins directly.
ICOs attract a lot of attention from cryptocurrency investors and enthusiasts alike, given that they are speculative investments. ICOs allow you to invest small amounts of money to potentially earn higher returns than what would typically be available through cryptocurrency exchange platforms like Coinbase.
It’s important to point out that the cryptocurrency market can be volatile, which means upside potential can also come with substantial downside risk. Many experts assert that successful cryptocurrency investment requires trading or holding diversified portfolios, so managing your risk exposure is of the utmost importance when investing in emerging technologies with high volatility levels, such as blockchain.
When it Comes to Crypto Startups, There's Something for Everyone
With cryptocurrencies on the rise, there is no shortage of new startups trying to get in on the market, offering everything from crypto-payment systems to blockchain-backed digital advertising.
Taking the time to research up-and-coming startups and finding something that aligns with your lifestyle and goals can go a long way towards a lucrative and enjoyable investment experience. To learn more about our own startup, Carnomaly, start with our whitepaper here.
Have another crypto startup that deserves to be on the list? Tweet us @carnomaly and let us know.