Asian crypto startup companies could become “unicorns” despite crypto winter, says report
A joint report from KPMG and HSBC has shed light on the state of start-ups in the Asia-Pacific. The report picked out a handful of Web 3 companies that could emerge as unicorns in the coming years.
According to the joint study, there are over 6,000 start-up companies operating in the Asia-Pacific region, and a quarter of the party is engaged in Non-Fungible Tokens (NFTs) and decentralized finance (DeFi).
The report highlighted that despite the drastic fall in cryptocurrencies, some firms in the sector had the potential to be unicorns. KPMG and HSBC identified Stader Labs, a Singaporean DeFi platform, Catheon Gaming and Hex Trust as companies that can be valued at a billion dollars when the crypto winter thaws.
100 other companies spanning several industries were selected as part of the exclusive list. The report focuses on 12 markets in the Asia-Pacific region, with China, Hong Kong, India, Japan and Australia at the forefront.
Darren Yong, KPMG’s head of technology, media and telecom in the region, has tipped the metaverse to be a crucial factor for Web 3 companies to reach their potential. Experts already predict that the meta-verse could grow to a market of 13 trillion dollars by 2030.
“There will be a resurgence of applications,” Yong said. “We believe that blockchain companies and cryptocurrencies will more broadly return at some point.” He added that should they deliver value, “they would emerge as the next Amazon.”
Apart from functionalities in the metaverse, a key factor that can determine how the pendulum swings are the development in cross-border transactions. Faster, cheaper and more efficient cross-border transactions would put DeFi companies on the path to unicorn status.
China is leading despite a tough regulatory stance
The joint report notes that the trio of China, India and Japan have the most start-up companies in dispute over the unicorn designation. China’s case is peculiar because the regulators have cracked down on major internet companies, sending stock prices to staggering lows.
The cryptocurrency crash in the summer of 2021 stopped cryptocurrency activity. Cryptocompanies were forced to leave the country while miners moved to new jurisdictions. Nevertheless, Chinese start-ups continue to attract funding to keep the ecosystem buzzing with activity, the report notes.
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