In this article, we discuss the 10 best cryptocurrency startups to watch. If you want to skip our detailed analysis of these startups, go directly to the 5 Best Cryptocurrency Startups to Watch.
Cryptocurrencies have exploded in value from humble beginnings in 2009 when Bitcoin, the most popular cryptocurrency in the world today that touched a market capitalization of more than $1 trillion towards the end of February, was created and launched as the first decentralized cryptocurrency. Since 2012, Bitcoin has gained more than 193,000% in value and accelerated the launch of hundreds of different types of cryptocurrencies. By 2026, the market size for cryptocurrencies is expected to cross $1 trillion in value.
There is little doubt that crypto-related ventures are some of the hottest items in the technology sector. Many big companies who want to integrate revolutionary new technology onto their platforms or just want some exposure to the industry are funding crypto startups. Big tech names such as Alphabet Inc. (NASDAQ: GOOG) and Amazon.com, Inc. (NASDAQ: AMZN) are part of this list, along with payments giant PayPal Holdings, Inc. (NASDAQ: PYPL). Hedge funds and retail investors are jumping on the crypto gravy train as well.
Alphabet Inc. (NASDAQ: GOOG) has invested in Blockchain.com, one of the largest online crypto platforms in the world. Amazon.com, Inc. (NASDAQ: AMZN) owner Jeff Bezos has backed Chipper Cash, a fintech company based in Africa that has rapidly gained popularity across the continent and is now looking to expand overseas. PayPal Holdings, Inc. (NASDAQ: PYPL) earlier this year announced that it was in the process of allowing hundreds of millions of users on its platform to checkout with cryptocurrencies.
As consumer confidence in crypto offerings increases through institutional investments and it becomes clear that crypto is indeed the future of financial services in a digital world, startups that aim to solve crypto-related problems in the market have been gaining in popularity. Cybersecurity, health, and coin exchanges are some of the key segments that investors should monitor as they offer explosive growth potential in the crypto market. It remains to be seen whether the wider finance world, stil reliant on fiat, can weather these tailwinds.
The entire hedge fund industry is feeling the reverberations of the changing financial landscape. Its reputation has been tarnished in the last decade, during which its hedged returns couldn’t keep up with the unhedged returns of the market indices. On the other hand, Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 124 percentage points since March 2017. Between March 2017 and February 26th 2021 our monthly newsletter’s stock picks returned 197.2%, vs. 72.4% for the SPY. Our stock picks outperformed the market by more than 124 percentage points (see the details here). We were also able to identify in advance a select group of hedge fund holdings that significantly underperformed the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 16th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.
With this context in mind, here is our list of the 10 best cryptocurrency startups to watch. These startups were selected keeping in mind the crypto-related problems they aim to solve, the quality of products or services they offer, and their basic business model underpinning the earnings philosophy.
10. CoinSwitch Kuber
CoinSwitch Kuber is a cryptocurrency exchange primarily facilitating crypto transactions in India. In late April, the firm raised $25 million in funding from Tiger Global Management LLC, the New York-based hedge fund with $43 billion in assets under management. With the latest funding, the company is now valued at over $500 million. Scott Shleifer, a partner at the hedge fund, has told news media in India that the fund is excited to partner with a firm that is well positioned to cash in on the crypto boom among retail investors in the country.
Chase Coleman of Tiger Global
Previously, the crypto exchange had also raised funding from Paradigm, an investment firm founded by Fred Ehrsam. Ehrsam is one of the founders of Coinbase Global, Inc. (NASDAQ: COIN), the largest crypto exchange in the world.
Coinbase Global, Inc. (NASDAQ: COIN) went public in April in one of the biggest IPOs of the year so far, ending the first day of trading with a market cap of $86 billion.
Coinbase Global, Inc. (NASDAQ: COIN) has earned bullish ratings from many investment advisories in recent weeks even as crypto stocks tumble with the fall in price of Bitcoin.
Just like Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN), and PayPal Holdings, Inc. (NASDAQ: PYPL), Coinbase Global, Inc. (NASDAQ: COIN) is one of the best crypto stocks to watch.
Bitwise Asset Management is a cryptocurrency index fund manager offering clients exposure to crypto investments. Recently, the fund raised $70 million in a Series B funding round led by big names in the hedge fund industry such as Stanley Druckenmiller, who runs Duquesne Capital, and David McCormick, the CEO of Bridgewater Associates. The crypto fund manages more than $1.2 billion in assets and has plans for aggressive expansion in the coming months, CEO Hunter Horsley trying to double the size of his team by the end of the year.
The backing of institutions like Duquesne Capital, one of the leading investment firms in the US with more than $3 billion in assets under management, will help crypto-related offerings gain wider acceptance. A top holding of Duquesne Capital is Microsoft Corporation (NASDAQ: MSFT), which is also bullish on the crypto industry.
Out of the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Microsoft Corporation (NASDAQ: MSFT) with 23.3 million shares worth more than $5.2 billion.
Just like Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN), and PayPal Holdings, Inc. (NASDAQ: PYPL), Microsoft Corporation (NASDAQ: MSFT) is one of the best crypto stocks to watch.
Fetch.AI Limited is an artificial intelligence (AI) company that markets AI solutions for blockchain networks. In late March, the company launched a new version of its Mainnet network with 30 validators that included Outlier Ventures, Forbole, and InfStones, among others. The company has so managed to raise more than $26 million in three funding rounds.
GDA Group and Outlier Ventures have contributed to these rounds. The company is based in the United Kingdom and is placed eight on our list of 10 best cryptocurrency startups to watch.
Another firm with a thriving artificial intelligence business is Baidu, Inc. (NASDAQ: BIDU), the Chinese technology company that operates the leading internet search engine in the country. The artificial intelligence unit of Baidu, Inc. (NASDAQ: BIDU) was recently called undervalued by investment advisory Daiwa.
At the end of the first quarter of 2021, 89 hedge funds in the database of Insider Monkey held stakes worth $6.5 billion in Baidu, Inc. (NASDAQ: BIDU), up from 51 in the preceding quarter worth $4.6 billion.
Just like Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN), and PayPal Holdings, Inc. (NASDAQ: PYPL), Baidu, Inc. (NASDAQ: BIDU) is one of the best crypto stocks to watch.
Provenance is a company that markets supply chain and product transparency. It operates software that uses blockchain, mobile, and other open sources of data to provide users with the origin, tracking, and impact of products. It has raised more than $1.2 million in funding so far over five rounds. Digital Currency Group and Working Capital Fund are some of the big names that have invested in the company. The company is based in San Francisco and is ranked seventh on our list of 10 best cryptocurrency startups to watch.
A company that operates on a similar business model to Provenance is MongoDB, Inc. (NASDAQ: MDB), the software company providing commercial support for source-available databases. MongoDB, Inc. (NASDAQ: MDB) recently beat market predictions on earnings per share and revenue for the first quarter of 2021.
Out of the hedge funds being tracked by Insider Monkey, Boston-based investment firm Whale Rock Capital Management is a leading shareholder in MongoDB, Inc. (NASDAQ: MDB) with 1.2 million shares worth more than $338 million.
Just like Alphabet Inc. (NASDAQ: GOOG), Amazon.com, Inc. (NASDAQ: AMZN), and PayPal Holdings, Inc. (NASDAQ: PYPL), MongoDB, Inc. (NASDAQ: MDB) is one of the best crypto stocks to watch.
Solve.Care is a company that markets a decentralized blockchain platform for healthcare and related services. The firm links patients to health professionals and coordinates all kinds of benefits, care packages, payments within the system using a smart blockchain contract. It has so far managed to win the backing of several big insurance companies as the platform of the firm can be used to settle different kinds of insurance claims quickly and cheaply. The company has so far raised $30 million in funding over two rounds.
Another company making waves in the healthcare sector with the innovative use of new technology is Teladoc Health, Inc. (NYSE: TDOC), the telehealth stock that has seen a flurry of hedge fund interest in recent months as the coronavirus lockdowns helped the company grow dramatically with people opting to consult health professionals online instead of making the trip to a doctor.
At the end of the first quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $3.3 billion in Teladoc Health, Inc. (NYSE: TDOC), down from 50 in the previous quarter worth $2.6 billion.
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Disclose. None. 10 Best Cryptocurrency Startups to Watch is originally published on Insider Monkey.