Every year comes with many blockchain events. Every developer and enthusiast chooses to attend those that they find the ideal for them to engage with like-minded individuals. However, in the last several years, when the crypto bull market was dominating, the conference scene got out of hand. Many comic-cons for crypto came up.
The crypto bears of 2018 seem to have changed all that with most events disappearing, at least for now. For anybody who attended Consensus 2019, they noticed that the number of attendees to the event declined significantly. This year attracted about 3,000 people compared to the 8,000 participants a year before.
Consensus 2019 was down-to-business, professional, and mostly investment focused. It mainly hovered around the future of the industry. It is simply an economic Darwinism at its best. There was no pump and dump schemes or free cars. Everything focused on Quality teams and projects since that is all that remains after the hype.
Weak projects were weeded out last year by the tough markets. Companies with poor governance, sub-par technology, and inflated promises also disappeared. Now, only pools of well-managed, healthy and well-funded projects that promise a bright long-term future exist. That alone tells the real picture of the state of blockchain currently.
One of the attendees, Horizon Labs, attended Consensus to meet investors including Digital Currency Group (DCG) and Liberty City Ventures. The team at DCG stated that they are always ready to assist their portfolio companies. At the event, they put startups in touch with several key figures in the crypto industry.
The conference featured many keynote speakers with some of them explaining how to stay afloat in the changing legal environment. Also, different project trends were showcased and future opportunities discussed. Here are the lessons learned from the meeting.
Crypto Projects should expect increased KYC AML Regulations
Almost a third of the talks at the event entirely focused on the various regulatory hardships faced by the industry. Moreover, regulation, in general, was at the forefront of everybody’s minds. The increasing know-your-customer AML regulatory burdens keep interrupting the growth of the crypto industry.
Most of these regulatory burdens target crypto exchanges and all other on- and off-ramps from cryptocurrency to fiat currencies. A notable happening in this context is the expected imposition of ‘travel rules’ for all crypto exchanges. These measures take the already overbearing KYC requirements on digital assets even further.
Exchanges will need to collect and store information on their customers. Also, they will have to share that information with other exchanges and institutions whenever funds move. Although it is a shocking development for the ardent fans of decentralization and anonymity, it comes as no surprise for those who know existing banking regulations.
US banks are already required to do so. As it is evident from the securities law to tax law, regulators are striving relentlessly to constantly apply current laws to crypto.
Enterprise blockchain could be the next big thing
A new industry trend seems to grab people’s attention in the crypto space every year. In the past few years, exchanges and wallets have taken the front seats. This year, everything points towards enterprise blockchain. The new frontier was put in a major display at the Consensus 2019. Many companies are joining the space which is great.
With many companies coming in, it validates the new concept and offers opportunities for collaboration. Also, it means that blockchain is turning into a more practical venture. Thus, all businesses irrespective of their size are set to benefit. Investors are on the prowl due to the major potential opportunities in this space.
Investors have a lot of cash ready to invest
A major takeaway from Consensus 2019 is that investor appetite in enterprise blockchain startups is growing. There is more money than ever currently. However, the crypto winter withered the number of deals getting structured and those deals getting funded. For now, everybody is fighting to get a piece of the good projects that are coming up and raising capital in this environment.
Anyone with a promising project with great technology and a great team is in luck. The current sentiments will make it easy for such projects to raise capital. It is evident from Horizon Lab’s oversubscribed capital raise. Therefore, do not expect to show up at Consensus anymore expecting investors to write you checks. Project developers must be in the right segment featuring the right team with the right backers.
Backers refer to cornerstone investors that believe in the developer and their project. In most cases, getting adequate funding majorly relies on who else is in the deal. Thus, investors should choose their first few investors carefully to guarantee the success of their start-up.
What’s in it for Crypto Law Insiders?
The insiders should look at the current market conditions as an investment opportunity. Anyone who wants to invest should review and determine the projects that have staying power and those that do not. Looking at how companies adjust to cope with the hard times today gives a sign of how they will face other challenges in the future.
The current market conditions offer a unique chance to determine the resilience of various companies and how they treat investor money. This notion is particularly true with enterprise blockchain. It is important to find the ideal project to back as many continue to pick up speed in the new category. Many investors and companies are targeting this nascent segment while taking different approaches.
Enterprise blockchain is being used in many real cases as it is evident from Latin America’s largest invoicing company.