Partnered With:

70% of founders of CoinFund investment companies are optimistic about the encryption market in 2024, and AI is still the most popular

Read this article in 9 Minutes

"The next wave of Web3 applications will solve problems in the traditional world, where decentralization has unique value."

Original Title: "Ask the Builders: Introducing the 2024 CoinFund Founder Forecast"

Original Author: Jules Mossler

Original Translation: Deep Tide TechFlow

By the end of 2023, and with 2024 just around the corner, there are varying opinions on the development of Web3 for the upcoming year.

In this article, the founders of more than 30 projects invested by CoinFund expressed their views on the cryptocurrency market in 2024.

Are they optimistic or pessimistic about the entire cryptocurrency market? Which areas are they unanimously bullish on?

We are currently at which stage of cryptocurrency development, and what will happen in the future?

In the field of cryptocurrency, this is obviously a classic question, as technology is constantly evolving.

Web3 enthusiasts and developers are the cornerstone of the future. They tirelessly showcase their vision of the future and are eager to clarify the facts, even when mainstream media and the public have yet to fully understand Web3. If you want to know how cryptocurrency will develop, the best way is to ask those industry professionals.

CoinFund's founders' predictions for 2024

In November 2023, CoinFund conducted a survey of the founders or CEOs of 30 investment portfolio companies to understand their views on the prospects of web3 in 2024.

The survey results show that: most founders plan to expand their recruitment next year and hold optimistic views on the future of Web3 in various fields, from blockchain and artificial intelligence to zero-knowledge proofs, etc.

Despite the optimistic market sentiment, a quarter of respondents indicated that the uncertainty of US regulation has had a significant impact on their strategies for 2024. As these entrepreneurs adjust their resources and strategies to respond to US regulatory measures and consider other jurisdictions such as Singapore more favorable to support their innovation, the US may lose its technological advantage due to the departure of these teams, and lose its economic impact built on the new internet.

The surveyed respondents are able to effectively represent the investment situation of CoinFund, which has accumulated nearly $1.5 billion in funds.

The founder's attitude towards development is optimistic but cautious, possibly learned to operate conservatively during the bear market in the past two years. 70% of the respondents expressed optimism about entrepreneurial opportunities in cryptocurrency and Web3, and 70% of the founders plan to expand recruitment next year without any plans for layoffs.

Half of the surveyed founders do not plan to raise funds next year. Among those who plan to raise funds (20% of the total), the funding needs may be around $5 million to $10 million.

2023 is a year of rapid development for the blockchain industry. Technology teams dedicated to the long-term development of Web3 are more deeply involved in it. Many newly funded companies are working on infrastructure to improve efficiency and expand the blockchain, preparing for the industry to meet the needs of mainstream consumers. Respondents predict the fastest growing areas in 2024 will be:

1）Web3 x AI；

2）ZK；

3) DeFi and consumer applications;

4) Games, Layer2s, and wallets;

RWA, NFT, DePin, as well as the Web2 to Web3 service that links users from Web2 to Web3, are closely following.

When it comes to choosing a location for your startup, have you considered Singapore? Seven founders believe that Singapore is currently the most crypto-friendly country for startups. They believe that it has efficient capital flow, a clear and friendly regulatory environment, and a gateway status to the Asian and global ecosystem. The UK is also favored due to recent regulatory developments and opportunities to engage with a wider EU. Despite confusion caused by small business banking and opaque regulatory environments, the US is praised for its talent density, networking capabilities, and infrastructure support for small businesses.

Cloudburst Technologies founder and CEO Evan Kohlmann said, "For startups, the most friendly country in the world is the United States, but if the United States does not make efforts to adopt standardized cryptocurrency regulation (like other countries in the world), the legal environment will not allow cryptocurrency business operations." Almost all respondents (97%) claimed to be "understanding or partially understanding" of US regulatory trends; 80% of respondents were "understanding or partially understanding" of regulatory trends outside the United States. One-quarter of respondents said that their development strategies were largely influenced by US regulation.

Interviewed founders' predictions for other aspects in 2024:

增长

translates to

Growth

in English.

Ben Fielding,GenSyn Co-founder:

The next wave of Web3 applications will solve problems in the traditional world, where decentralization has unique value.

Danny Zuckerman,3boxlabs Co-founder:

The growth of Web3 will not come from a single killer application, but from a set of killer use cases, because the killer feature of Web3 is composability - the ability to use assets and data across multiple applications. Two trends below will make this more likely to happen in 2024:

1. PWA + Key Model greatly speeds up the use of Web3 applications by consumers.

2. The availability and scalability of the Web3 data stack bring greater composability.

AI

Nick Emmons, Co-founder and CEO of Upshot:

Decentralized AI will become the fastest growing category in the cryptocurrency industry over the next 18 months. Developers will heavily utilize artificial intelligence in building the next generation of decentralized applications.