New Crypto Startups Hotspots Emerge in Asia and Africa
Asia and Africa have emerged as new powerhouses in the crypto industry as 2024 saw these countries launching more crypto startups. According to recent data from blockchain accelerator Alliance, the first half of the year has seen a notable shift in the geographic distribution of new crypto ventures.
Asia and Africa see rise in share of crypto startups this year. Source: Alliance Europe Takes the Lead
Europe emerged as the leading region for new crypto ventures, capturing 31.4% of the market share. This marks a significant change from previous years, as Europe has overtaken the traditional leaders, the United States and Canada. Both countries now account for 29% of new startups. Asia secured the third position with a 26.8% share, while Africa’s representation increased to 5.2%, just below Latin America. Oceania, primarily Australia and New Zealand, accounted for 1.8% of new crypto startups.
Geographic breakdown in H1 2024. Source: Alliance
This trend, reported in a July 10 X post by Alliance, is attributed to regulatory uncertainties in the U.S. This has prompted many entrepreneurs to seek more favorable conditions elsewhere. According to Alliance DAO’s Qiao Wang and “Chloexyg”, increased adoption of digital asset applications in other countries has also contributed to this trend.
Team Composition and Founder Backgrounds of Crypto Startups
The changing scene isn’t limited to geography alone. Alliance’s data, compiled from 3,000 annual applications to Alliance’s startup accelerator program, provides insights into industry trends due to its large sample size and unbiased approach. The data also reveals interesting trends in team composition and founder backgrounds. The majority of new crypto startups (51%) are launched by teams of 2-5 members. Solo founders, while still significant, account for 39% of new ventures.
Over half of startups are between 2 and 5 people. Source: Alliance
Perhaps most intriguingly, the data shows a shift in the professional backgrounds of founders. The percentage of entrepreneurs hailing from big tech firms has decreased by over 15 percentage points since 2021. A similar decline is observed in founders from top 100-ranked universities.
The impact of regulatory pressures, particularly in the United States, is evident beyond just the geographic distribution of crypto startups. Self-custody service providers like Phoenix Wallet and Wasabi Wallet have recently exited the U.S. market, while other firms are expanding their operations to more crypto-friendly jurisdictions. Many industry insiders have criticized the U.S. Securities and Exchange Commission’s “regulation-by-enforcement” approach, viewing it as a significant factor in the current market shifts.
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