In this article, we discuss the 10 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. has invested in Blockchain.com, one of the largest online crypto platforms in the world. Amazon.com, Inc. 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. 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.
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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.
Best Cryptocurrency Startups to Watch
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. 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. 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., Amazon.com, Inc., and PayPal Holdings, Inc., Coinbase Global, Inc. is one of the best crypto stocks to watch.
9. Bitwise
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 with 23.3 million shares worth more than $5.2 billion.
Just like Alphabet Inc., Amazon.com, Inc., and PayPal Holdings, Inc., Microsoft Corporation is one of the best crypto stocks to watch.
8. Fetch.AI
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., up from 51 in the preceding quarter worth $4.6 billion.
Just like Alphabet Inc., Amazon.com, Inc., and PayPal Holdings, Inc., Baidu, Inc. is one of the best crypto stocks to watch.
7. Provenance
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. 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. with 1.2 million shares worth more than $338 million.
Just like Alphabet Inc., Amazon.com, Inc., and PayPal Holdings, Inc., MongoDB, Inc. is one of the best crypto stocks to watch.
6. Solve.Care
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., down from 50 in the previous quarter worth $2.6 billion.
5. Blockchain.com
Blockchain.com is a cryptocurrency explorer, wallet, and exchange platform. The company has managed to raise more than $490 million in funding so far over six rounds, with the latest round bringing in $300 million in late March. The company is one of the largest pure plays on crypto in the internet market, boasting a user base of over 50 million. The company is based in London and is placed fifth on our list of 10 best cryptocurrency startups to watch.
One of the lead investors in the company is Google Ventures, a fund backed by Alphabet Inc. (NASDAQ: GOOG), the California-based technology company that consistently backed the rise of crypto but not invested heavily in it yet. Alphabet Inc. is gearing up for the launch of a retail store as it bids to rival competitors like Apple.
Out of the hedge funds being tracked by Insider Monkey, London-based investment firm TCI Fund Management is a leading shareholder in Alphabet Inc. (NASDAQ: GOOG) with 2.9 million shares worth more than $6 billion.
4. Chipper Cash
Chipper Cash is a financial technology company that facilitates cross border peer-to-peer payments. The startup has so far raised more than $152 million in funding over five rounds, with the latest $100 million raised at the end of last month. Fintech is one of the fastest growing business segments in Africa and Chipper Cash is already serving customers in many Africa states, including Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa, and Kenya. The firm has plans for expansion into the UK as well.
Jeff Bezos
Amazon.com, Inc. (NASDAQ: AMZN) owner Jeff Bezos has invested in the company through his personal fund, Bezos Expeditions. Although Amazon.com, Inc. is still yet to fully embrace cryptocurrencies, the company is seeking a foothold in the crypto-related fintech realm.
At the end of the first quarter of 2021, 243 hedge funds in the database of Insider Monkey held stakes worth $50 billion in Amazon.com, Inc., down from 273 in the preceding quarter worth $51 billion.
3. Spring Labs
Spring Labs is a company that is building a platform which will enable big financial institutions to securely share data between themselves without compromising on user identities. The company has so far raised more than $68 million in funding over three rounds, with the latest $30 million raised at a round in late April. On May 11, consumer credit reporting agency TransUnion (NYSE: TRU) revealed that it invested in Spring Labs as it seeks to explore new models for user profiling in baking services.
The endorsement by TransUnion (NYSE: TRU), a company with a market capitalization of more than $20 billion, will boost the profile of Spring Labs and bring in more investors to the company. TransUnion invested in the startup after lengthy discussions with Spring Labs founder and CEO Adam Jiwan.
Out of the hedge funds being tracked by Insider Monkey, New York-based firm Select Equity Group) is a leading shareholder in Spring Labs founder and CEO Adam Jiwan with 4.3 million shares worth more than $391 million.
2. Netki
Netki is a company that provides digital verification technology. The company has raised more than $3.5 million so far in two funding rounds led by investors such as O’Reilly AlphaTech Ventures. Netki aims to be the leading provider of tools that will enable blockchain-based currencies like Bitcoin to expand their reach around the world. The products marketed by the company comply with anti-money laundering rules laid down by international bodies. It is ranked second on our list of 10 best cryptocurrency startups to watch.
A similarly good investment in the cybersecurity sector is CrowdStrike Holdings, Inc. (NASDAQ: CRWD), the cloud workload and endpoint security company. CrowdStrike Holdings, Inc. (NASDAQ: CRWD) is expected to benefit from a new plan by US President Biden to pour hundreds of billions of dollars into American technology firms to protect against increasing cyber threats to ordinary Americans.
At the end of the first quarter of 2021, 77 hedge funds in the database of Insider Monkey held stakes worth $5.2 billion in CrowdStrike Holdings, Inc., down from 92 in the preceding quarter worth $7.2 billion.
1. Bitpanda
Bitpanda is a cryptocurrency exchange platform that deals in Bitcoin, Ethereum, and other cryptocurrencies, as well as gold and stocks. It is placed first on our list of 10 best cryptocurrency startups to watch. It is one of the most valuable startups based out of Europe and raised more than $170 million in funding in late March at a valuation of over $1 billion. The company already operates in Austria, France, Spain, Turkey, Italy and Poland. It is different from other crypto exchanges as it deals in stocks and gold in addition to digital assets like crypto.
The latest round of funding for the firm was led by Valar Ventures, a fund backed by billionaire Peter Thiel, the co-founder of PayPal Holdings, Inc. (NASDAQ: PYPL) with a long and impressive history of backing startups that grow into huge corporations. PayPal Holdings, Inc., since its founding, has become one of the largest financial services companies in the world.
Out of the hedge funds being tracked by Insider Monkey, UK-based investment firm Fundsmith LLP is a leading shareholder in PayPal Holdings, Inc. with 12.3 million shares worth more than $2.9 billion.
You can also take a peek at Billionaire Stan Druckenmiller’s Top 10 Stock Picks and Billionaire Julian Robertson On Interest Rates and His Top Stock Picks For 2021.
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This article is originally published at Insider Monkey.