Unicorns are, according to a common definition, technology companies that have exceeded the threshold of $1 billion in their market valuation. Unfortunately, they are rare in the market. Maybe not as much as the famous mythical horse with one horn on its forehead, but it is difficult to find many such projects. And even more so on the crypto market t. However, we took up this challenge and set off on a journey full of dangers and adventures. The effect? We did it! We found as many as 10 most valuable companies in the blockchain technology space.
Start-ups from the blockchain and cryptocurrencies market constitute only a small part of unicorn companies. It turns out that creating a giant worth $1 billion or more in this space is not as simple as we might think. The Hurun Research Institute suggests that around 500 companies worldwide belong to this category. In turn, those who deal with blockchain and digital currencies and meet the USD 1 billion valuation requirement are much, much less.
Is it important? Some are of the opinion that this ratio is not significant and does not fully show the potential and maturity of a given market. Nevertheless, market valuation of a company is a useful alternative to more common measurements. Not every crypto-currency company issues a token with a large market capitalization and not every entity is a stock exchange with a record volume of trading. However, this does not mean that these companies cannot be worth much.
Bitmain – 12 billion dollars
Bitmain is definitely a company on the crypto marketof the highest value. The mining company has accumulated great wealth by selling its Bitcoin digging equipment, managing mining pools and excavator farms and attracting venture capital. Today, Bitmain can boast a valuation of approximately $12 billion. This value was reported by Chinese news service Caixin in June 2018.
It is worth mentioning that Jihan Wu has once again become the head of the company. During one of the last events, he presented a new strategy for the company’s development. It can help Bitmain to get even richer.
Coinbase – $8 billion
Coinbase is one of the most famous crypto stock exchanges in the world, but as a company it also has several other sources of revenue. Most importantly, the company offers many interesting services for institutional investors, which may further increase its valuation in the future. In October 2018. Coinbase officially announced that its valuation amounted to USD 8 billion.
Robinhood – USD 7 billion
Robinhood, whose platform name is of course associated with the famous Sherwood forest thief, started as a website to sell and buy shares, also focusing on sensory trading. However, its management noticed the potential in the crypto market. In 2018, options for trading digital assets were added.
Robinhood is often called “the trading application for the millennium generation”. The popularity of Robinhood among young people undoubtedly contributed to the success of the company. The company’s valuation of $7 billion was first announced in May this year. If we wait for another bubble of crypto its value will probably increase. And this is very…
Ripple, $5 billion.
Ripple is responsible for the top XRP, which is today the third largest crypto-currency in the market (taking into account capitalization). The company also offers several payment and settlement services, which, however, are promoted under the RippleNet brand.
In September 2018. Forbes announced that the value of Ripple was USD 4.7 billion, which is different from XRP’s market capitalization of over USD 9 billion. Again, as we wrote earlier, it can be assumed that Ripple will grow in strength during the next crypto rally. Among investors there are also opinions on the fact that the XRP token will ultimately take the place of BTC in terms of capitalization. Will this be the case? We will see in a few years’ time.
Kraken – USD 4 billion
The Kraken is another big stock exchange in this list. In February, the company acquired a futures trading platform, underwent a thorough rebranding and hired several employees. It completed a $13 million financing round in the same period, raising the current valuation to $4 billion.
Circle – $3 billion
Circle is a multifaceted company providing cryptocurrencies services. Although it started its activity as a payment company, it eventually started to offer commercial and investment services. Circle is also responsible for the popular stablecoin coin. In 2018 Circle reached a valuation of $3 billion after a $100 million round of financing.
Block.one – USD 3 billion
Block.one is the company behind the controversial EOS, which is the seventh largest crypto-currency and the main competitor of Ethereum. In March Bloomberg received an e-mail from a shareholder who informed the media that Block.one is already worth 3 billion dollars.
Binance – $2 billion.
Binance is the largest exchange in terms of trading volume and provides several other additional features and services, including the Binance Coin Token and Binance Chain. In an interview for ForkLog in October, CEO Changpeng Zhao confirmed that Binance has a value of at least $2 billion, and added that the actual figure may be even higher.
BitMEX – USD 3 billion
BitMEX is a crypto exchange which offers mainly futures contracts. It is also famous for its leverage trading. In July 2018. The Times estimated that the valuation of BitMEX is USD 3.6 billion based on its annual profits. Other estimates suggest, however, that the actual value of the company is closer to $1 billion.
Unfortunately, the company has also been controversial for a long time. Even yesterday, the media reported that BitMEX and its founder, Arthur Hayes, were sued for $300 million for allegedly deceiving an early investor in the company. Bloomberg wrote about the case. Frank Amato and RGB Coin Ltd. claim that they were the first initial investor of BitMex in 2015. The $30,000 investment was later to be converted into equity, now valued at over $50 million, but was not allotted that share and capital.
Canaan Creative – $2 billion
Canaan Creative is a mining company that gives way to Bitmain in terms of sales of mining equipment. Despite this, Canaan managed to maintain its unicorn status: its value was estimated at 2-3 billion dollars during the last stock exchange debut.
Do valuations really matter?
Some of the unicorn companies mentioned above are titans from the cryptocurrencies industry. However, there are a few other unicorns that barely hold their position: Dfinites, Ebang, Bitfury, Liquid, Revolut and Polkadot belong to startups that are valued just over $1 billion. However, these results are also controversial.
There are also many strong companies that are valued below $1 billion today, and the fact that they have achieved such valuation at all is not a small feat. Cryptographic unicorns are almost as rare as their mythical namesake – but successful cryptographic companies are still quite common. Their number will be growing.