Venture capitalists have described the rarity of startups that exceed a $1 billion valuation as unicorns in the past. Today, these unicorns are becoming more common. There are more than 275 companies across the globe that fit the description, and some of them are well-known entities such as Pinterest and Uber. As a whole, the unicorn companies boast a market valuation that exceeds $965 billion, and the aggregate investment amount is just $200 billion. That reflects about a 400 percent return. Instead of accruing into investors’ brokerage accounts, these investments are limited to individuals with a high net worth and venture capitalists. Regular investors have been left behind.
Ian King recently discussed this issue and described cryptocorns. The article was published by Banyan Hill, which is known for its insightful investment advice from skilled advisers. Ian King is a well-known entrepreneur and a prominent cryptocurrency trader. With more than 20 years of experience analyzing markets and making successful trades, Ian King is eager to share his knowledge with others. He is a top contributor of trading topics on Investopedia, and he made a special program to help cryptocurrency investors overcome the complexities of alternative currencies. Ian King said in his article that he was not surprised to see investors anxiously waiting for the next moonshot’s phase to start.
What Is A Cryptocorn?
Bitcoin is the most well-known cryptocurrency today. However, there are many other blockchain technology applications. Most news agencies that have been talking about bitcoin value and blockchain technology have been focusing on the 1,485 percent gain of the most popular cryptocurrency during the past year. Ethereum is another cryptocurrency that has been growing, and its gain totaled an impressive 12,822 percent during the previously mentioned growth period of bitcoin. This platform was created by a teenager in 2013, and it spurred the development of about 1,000 other blockchain projects.
As Ian King pointed out in his article, nontraditional investors are eager to invest in these new blockchain ideas since they solve major problems in the real world. The supply of companies employing blockchain technologies is smaller than the demand, and Ian King said that this is creating a financial mania right now. There is speculation about investors trying to work their way onto the ground floor, which is causing a spike in prices. Such a drastic increase has never happened before. Ian King said that the response is leading to a new type of crypto unicorn startup that he calls a cryptocorn.
Ian King said that there are more than 40 blockchain projects. When combined, their total valuation is about $1 billion. In comparison with last year’s statistics, this is remarkable because of how bitcoin stood alone in the cryptocorn ring then. As Litecoin, Ripple, Ethereum and other cryptocurrencies grew, bitcoin’s market share fell from 90 percent to under 35 percent during that short period.
Launching a cryptocurrency is much harder than it appears, if not downright impossible.#BitcoinSurvives #BeatTheOdds #Crypto #Cryptocurrency #Investing #CryptoMining #BanyanHillPublishinghttps://t.co/AvVawIOJGe
— Ian King (@IanKingGuru) February 15, 2018
Leaders Of Digital Currencies
Ethereum, Ripple and Litecoin are known as altcoins, and they are becoming more popular every day. Initial coin offerings were used to entice buyers, and the ICOs were designed to be like a combination of initial public stock offerings and venture capital. In 2014, there were around 60 altcoins. Today, there are nearly 1,400. Altcoins grew by an impressive 25,000 percent during the past year alone. Their growth went to $500 billion from only $2.2 billion. Most platforms allow investors to use bitcoin value to purchase Ethereum or other altcoins. After they make the purchase, they can use their altcoins for anonymous transactions, renting virtual space or trading for other virtual items. Some people are now using them for gambling as well with online altcoin casinos.
With ICOs, investors have access to potential cryptocorns when they are in their initial stages of having public market liquidity. In the past, investors were unable to access such companies early on, and that left the largest potential for gains to venture capitalists. With the influx of investors who want to focus on altcoins, there has been a disruption in user availability with some platforms. Binance, Bittrex and Bitfinex are three major exchanges, and they temporarily restricted potential new users from registering after the recent uproar of activity. At the time of the restriction, Binance had reported as many as 25,000 new accounts being created each day.
Bitfinex made an announcement that new account privileges would be restored to the public on January 15, 2018. The three companies shutting down access temporarily to new users was a strategic move to add upgrades and make infrastructural changes necessary to accommodate a larger volume of accounts. Some cryptocurrency investors did not want to wait, and savvy account holders made money from them by selling pre-made accounts on eBay. The price tags for those accounts ranged between $200 and $10,000.
The Anticipated Direction Of The Crypto Boom
Ian King said that the current market for altcoins is similar to the dot-com bubble from the 1990s. However, he also pointed out that it probably contains the cryptocurrency equivalents of giants such as Amazon and Google. In addition to holding such a great potential, it has churned out some duds and will continue to do so. Ian King also mentioned the recent spike in popularity of blockchain technology, which is leading to companies marketing specialized blockchain technology innovations to specific groups or industries. He expects the frenzy to continue with some companies doing poorly and a few taking the lead.
As someone who has worked with derivatives, hedge funds and more, Ian King has plenty of valuable knowledge to help form his predictions. He is new to Banyan Hill Publishing and was welcomed there in 2017. His weekly contributions help readers stay ahead of the newest crypto developments. In addition to his weekly advice, he is working on creating a crypto trading course for Banyan Hill Publishing’s readers. He plans to launch it later in 2018, for more information visit https://cryptoprofitsummit.com/.