Blockchain Startups Secure Funding Despite Crypto Industry Funding Drop

Blockchain Startups Secure Funding Despite Crypto Industry Funding Drop

Blockchain-based startups are defying the bear market trend by securing funding, with MetaMask partner Blockaid raising an impressive $33 million in October. Despite this positive news, the overall funding in the crypto industry has dropped to levels last seen in 2020, totaling $2.1 billion over 297 deals in the third quarter of 2023, according to Messari’s report. This decline can be attributed to investors taking a more cautious approach and focusing on projects with tangible real-world applications.

Applications of Blockchain in Scientific Research

In October, the Nature Science Journal published an article discussing the potential applications of blockchain technology in scientific research. One notable aspect highlighted by the journal is the role of decentralized autonomous organizations (DAOs) in supporting underfunded scientific research. DAOs, with their ability to provide transparent and decentralized governance, can significantly benefit the scientific community by ensuring fair and efficient allocation of funds.

London-based fintech company Untangled Finance recently raised $13.5 million in funding. The round was led by Fasanara Capital and aims to accelerate the company’s efforts in bringing institutional-grade credit to the blockchain. Untangled Finance’s protocol focuses on tokenizing real-world private credit assets, such as invoices and SME loans, into on-chain structured credit pools. Through these pools, collateralized debt notes are issued to both DeFi and TradFi investors. The company believes that private credit markets offer the most utility for DeFi, and plans to access over 130 verified asset originators across 60 countries.

Nocturne: Enabling On-Chain Private Accounts

Nocturne, a blockchain protocol enabling on-chain private accounts, recently raised $6 million in a seed funding round co-led by Bain Capital Crypto and Polychain Capital. The protocol combines stealth addresses, zero-knowledge proofs, and account abstraction to ensure privacy on public blockchains. Nocturne plans to launch on the mainnet in the coming weeks, and the funding will support the protocol’s production and deployment across different ecosystems. A portion of the funds will also be allocated for legal work to ensure compliance with changing regulatory requirements.

Account Labs, a web3 wallet provider, raised $7.7 million in funding from lead investors Amber Group, MixMarvel DAO Ventures, and Qiming Ventures. The funding coincided with the launch of the company’s first consumer-facing app, UniPass Wallet, on Polygon. UniPass Wallet leverages account abstraction, allowing users to create and access a self-custody web3 wallet using just a Google account and top up with Mastercard or Visa cards. The merger of hardware wallet developer Keystone and software wallet developer UniPass in May 2023 formed Account Labs. The company aims to address the demand for stablecoin transactions in Southeast Asia.

Rymedi: Blockchain-based Healthcare Data Exchange

Blockchain-based healthcare data exchange platform Rymedi secured $9 million in a Series A funding round. The round was co-led by RW3 Ventures and White Star Capital, with participation from Blockchange Ventures, Avalanche’s Blizzard Fund, and strategic angel investors from the healthcare industry. Rymedi currently serves over 1 million patients in more than 1,200 locations across the United States, Africa, and Australia. The newly raised funds will be used to enhance data security and improve accessibility to healthcare records for patients. The company’s focus on using blockchain technology to solve real-world problems in global markets has attracted investors like RW3 Ventures.

Waterfall Network, a layer-1 protocol, raised $2 million ahead of its mainnet launch expected in the first quarter of 2024. Bytrade Lab, an infrastructure provider, led the funding round and has become a key investor and user of Waterfall Network following a successful six-month trial. The protocol, which is Ethereum Virtual Machine (EVM) compatible, employs Directed Acyclic Graph (DAG) technology for unlimited scalability. Waterfall Network is also collaborating with BlueWave Corporation to develop its smart contract platform.

Despite the overall decline in funding in the crypto industry, blockchain-based startups are still successfully raising capital. The recent success of MetaMask partner Blockaid, along with other notable projects like Untangled Finance, Nocturne, Account Labs, Rymedi, and Waterfall Network, indicates that investors are recognizing the potential of blockchain technology in various sectors. These startups are leveraging blockchain’s unique features to solve real-world problems and disrupt traditional industries. With continued support and funding, these projects will likely pave the way for widespread adoption of blockchain solutions.

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