US Crypto Crackdown Drives Founders Away, Asia Soars in Alliance DAO Cohort

US Crypto Crackdown:The recent surge in regulatory scrutiny targeting the cryptocurrency industry in the United States has reverberated across the global startup ecosystem, with discernible shifts in geographic preferences and strategic initiatives among blockchain entrepreneurs. As the regulatory landscape evolves, startups are adapting their strategies and seeking opportunities in more hospitable jurisdictions while navigating the complexities of compliance.

Regulatory Climate: A Balancing Act

US Crypto Crackdown: The regulatory environment for cryptocurrencies and blockchain technology in the U.S. has become increasingly challenging, marked by heightened scrutiny and enforcement actions by regulatory bodies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Recent developments, including legal actions against prominent platforms like Binance and Uniswap, have contributed to a climate of uncertainty and caution among crypto founders operating in the U.S.

Alliance DAO: A Barometer of Shifting Trends

Alliance DAO, a stage-agnostic crypto accelerator, provides valuable insights into the evolving dynamics of the crypto startup landscape. The latest cohort of startups accepted into the program reflects notable trends in founder demographics, geographic distribution, and project focus, against the backdrop of the US Crypto Crackdown.

Geographic Shifts: Asia Ascendant

One of the most significant trends observed in Alliance DAO’s latest batch of applicants is the declining participation of US-based founders. According to Qiao Wang, a founding partner of Alliance DAO, North American applicants accounted for just 26% of the accelerator’s applicants in the first half of this year, down from 45% in the second half of 2021. This decline is attributed to regulatory concerns and the growing appeal of emerging markets, particularly in Asia.

Asia has emerged as a preferred destination for crypto entrepreneurs seeking regulatory clarity and access to a large, tech-savvy user base. Jurisdictions like Hong Kong, Japan, and Singapore have taken proactive steps to provide clear regulatory frameworks for the crypto sector, attracting founders disillusioned with policy uncertainty in the U.S.

Alliance DAO’s Latest Cohort: Responding to the US Crypto Crackdown

Villcaso: Democratizing Real Estate Investment

Founders: Nathaniel Sokoll-Ward, Val Lee

Description: Villcaso aims to democratize real estate investment by offering fractional ownership of U.S. properties to a global audience. Leveraging a “fully legal permissionless token,” Villcaso enables investors to access the real estate market with lower barriers to entry.

GoBankless: Transforming Cross-Border Payments in Africa

Founders: Ygor Francisco, Khayalethu Mtshali

Description: GoBankless is addressing the challenges of cross-border payments in Africa by leveraging stablecoins to enable instant, low-cost transactions. Targeting small businesses in Mozambique and South Africa, GoBankless aims to disrupt traditional banking intermediaries and enhance financial inclusion.

Wasabi Protocol: Revolutionizing Crypto Trading

Founders: Eren Derman, Kemal Hasan Atay

Description: Wasabi Protocol offers a leverage trading protocol designed to address liquidity challenges in crypto markets, particularly for new assets such as memecoins and NFTs. By backing user positions with underlying assets, Wasabi Protocol seeks to capitalize on the growing demand for innovative trading solutions.

Lulubit: Bridging the Gap in Central America’s Crypto Market

Founders: Ianir Sonis, Diego Hernan Cabrera, Alan Futerman

Description: Lulubit aims to facilitate crypto adoption in Central America by providing a user-friendly platform for buying, selling, and spending cryptocurrencies. With a focus on accessibility and affordability, Lulubit has rapidly gained traction in the region, boasting thousands of users and significant transaction volume.

ZwapX: Disrupting the Luxury Watch Market

Founders: Yohan Chiovetta, Noah Chiovetta, Rocco Di Capua

Description: ZwapX offers a marketplace for tokenized watches, allowing users to trade physical timepieces as digital assets. By providing certificates of ownership and authenticity through blockchain technology, ZwapX aims to revolutionize the billion-dollar luxury watch market.

Fractal Payments: Redefining Cross-Border Payments for Global Businesses

Founder: Pavel Skalin

Description: Fractal Payments is disrupting the traditional cross-border payments industry by leveraging stablecoins to offer faster and more cost-effective transactions. With a focus on global businesses, Fractal Payments aims to streamline international money movement while reducing fees and processing times.

Código: Empowering AI Training with Crypto Data

Founders: Jean-Philippe Emelie Marcos, Diego Besprosvan, Jaziel Guerrero

Description: Código provides highly curated datasets to train specialized AI models for high-stakes crypto applications, such as financial transactions. By crowdsourcing data collection and implementing a decentralized review process, Código aims to revolutionize AI training with crypto data.

Accrue: Building a Stablecoin Payment Network for Africa

Founders: Clinton Mbah, Adesuwa Omoruyi

Description: Accrue is creating a payment network powered by stablecoins to facilitate instant and affordable transactions in Africa. Leveraging the continent’s existing network of mobile tellers, Accrue aims to enhance financial accessibility and inclusion for millions of users across Africa.

Fig Investments: Tokenizing Hedge Fund Strategies

Founders: Guanzhi Ma, Tony Qian

Description: Fig Investments offers an automated trading desk that matches traditional finance interest in crypto with on-chain liquidity provider interest. By tokenizing hedge fund strategies, Fig Investments seeks to bridge the gap between traditional and decentralized finance, offering enhanced returns and liquidity to investors.

0G: Pioneering Modular AI Chain Technology

Founders: Michael Heinrich, Ming Wu

Description: 0G is building a modular blockchain solution that aims to scale Ethereum transactions by acting as a data availability layer. With a focus on speed, scalability, and cost-efficiency, 0G seeks to revolutionize blockchain technology and unlock new possibilities for decentralized applications.

Proto: Revolutionizing Navigation with On-Chain Mapping

Founder: Akshay Yeleswarapu

Description: Proto aims to improve navigation accuracy in developing countries by crowdsourcing mapping data and incentivizing contributors with token rewards. By harnessing blockchain technology, Proto seeks to create a decentralized mapping platform that enhances accessibility and accuracy for users worldwide.

Dinari: Creating a Global Tokenized Stock Exchange

Founders: Gabriel Otte, Chas Rampenthal, Jake Timothy

Description: Dinari offers a platform for non-U.S. investors to access U.S. securities via stablecoins. Registered with the SEC, Dinari’s tokens are backed by real-world stocks, providing global investors with unprecedented access to the U.S. stock market.

Navigating Regulatory Headwinds Amid US Crypto Crackdown

As the US Crypto Crackdown reshapes the global landscape for blockchain startups, founders must navigate regulatory challenges while capitalizing on emerging opportunities in alternative jurisdictions. Alliance DAO’s latest cohort exemplifies the resilience and adaptability of crypto entrepreneurs, showcasing innovative solutions that transcend geographical boundaries and regulatory constraints. Despite the regulatory headwinds, the crypto ecosystem remains vibrant, driven by a relentless pursuit of innovation and decentralization.