3 crypto companies land on the world’s top 10 leading fintech unicorns list
The fintech industry has grown rapidly, with innovative technologies changing how financial transitions are made. One of the most exciting developments in the area is the emergence of cryptocurrency firms that are gaining increasing acceptance among investors and consumers alike to register huge valuations.
In this line, data obtained by Finbold indicates that three cryptocurrency firms with a cumulative value of $42.3 billion entered the list of top 10 leading fintech unicorns globally as of the fourth quarter of 2022. The top ten fintech unicorns account for a total value of 273 .7 billion dollars.
An overview of the crypto firms shows that US-based Ripple has a value of $15 billion to rank fifth overall. Blockchain.com ranks sixth overall with a value of $14 billion. Non-fungible tokens (NFTs) marketplace OpenSea, valued at $13.3 billion, emerged as the eighth most valuable fintech unicorn globally.
Elsewhere, payments giant Stripe is the most valuable unicorn at $95 billion, followed by Checkout.com at $40 billion. UK-based challenger bank Revolut is third with $33 billion, followed by Chime with $25 billion.
The effect of crypto-unicorns
The emergence of blockchain-centric firms on the top list of unicorns is a significant milestone that demonstrates the growing relevance and importance of the crypto industry in the financial sector. Traditionally, fintech unicorns have been dominated by payment, banking and remittance platforms, but the entry of crypto-based companies looks set to disrupt the industry landscape. This is also an indicator that the crypto market is maturing as it enters the mainstream sector.
In fact, the startups have managed to earn their valuations, considering that the overall cryptocurrency space experienced a decline in 2022 following an extended bear market. This highlights that the underlying blockchain technology is driving the companies and has not been affected by the downturn in the crypto market, mainly caused by macroeconomic and regulatory issues rather than any flaws in the technology. Similarly, the economic conditions contributed to a decline in funding as investors wait on the sidelines to assess the situation.
Elsewhere, the United States remains the leading destination for unicorns due to a combination of factors, including a well-developed venture capital industry, a culture that encourages entrepreneurship and innovation, a large and prosperous consumer market, a diverse economy with diverse industries, and a supportive regulatory and legal environment for businesses.
The favorable environment in the US may not be the same for crypto companies considering the regulatory uncertainty that threatens the existence of firms in the region. However, cryptocurrency companies have the advantage of being able to move with ease, as there are no geographical boundaries that limit them. For example, in the wake of China’s crypto crash, many startups moved or set up elsewhere. There have been concerns that strict regulations in the US could lead to similar moves.
Ripple’s dominance amid regulatory uncertainty
Ripple remains the highest-valued crypto-unicorn amid the company’s troubled US operating environment, which has been dominated by regulatory uncertainty. The company is facing a lawsuit led by the Securities Exchange Commission (SEC) for allegedly selling XRP as unregistered securities.
The company’s valuation has remained stable, and seems unaffected by the uncertainty ahead of the conclusion of the case. The case is likely to have far-reaching effects on the overall crypto market. Overall, the valuation of Ripple can be linked to the fact that a significant proportion of the company’s operations are located outside the United States.
The future of crypto unicorns
On the other hand, the uncertain global economic climate raises concerns about unicorns’ ability to sustain valuations, with most companies already taking measures such as slowing hiring and layoffs as funding dwindles. Despite this, unicorns are considered prime candidates for an initial public offering (IPO), but the possibility of launching one depends on the state of the economy.
In general, there is optimism about the future, with most companies focusing on new products such as Web3 and the crypto sector that is likely to resume growth after the market downturn.
