Photo: Tokoverse Ground Zero / Tokocrypto

3 Reasons Why Tokoverse is the Ideal Ground Zero for Budding Blockchain Startups

The coming to the fore of the technological age has transformed the commercial sphere from the brick-and-mortar business model to being premised in the digital skies. Along with the tech boom, the venture capital (VC) investment patterns have also shifted accordingly with New Technology-Based Firms (NTBFs) having received a total of USD413 billion in VC fundings in 2021 which is a 210% year-on-year (YoY) increase over the USD196 billion received by such firms in 2020. The rise of the technological age means that VCs are actively in the hunt for digital businesses which are able to develop functional prototypes that harness technological innovations to solve real world problems in a cost-effective and timely manner through the use of concepts such as Lean Startup, Design Thinking and Agile as well as Design Sprint.

In many ways, the pandemic has accelerated the digital transformation of businesses which in turn has translated into the notable shift in VC investment patterns towards NFTBs. Nonetheless, there are always two sides to the coin and even tech companies are not immune to the effects of the pandemic as exemplified by the case of NASDAQ-listed Grab whose ride-hailing services were hit hard by pandemic-induced lockdowns though true to its startup roots which gives primacy to flexibility, the company has mitigated the impact by restructuring its operational model to deploy its infrastructure to accommodate other areas of services such as logistics delivery. With the pandemic looking increasingly likely to turn into an endemic with every passing day, the tech-focussed VC investment patterns are set to continue for the foreseeable future with blockchain and crypto companies being the prime targets of venture capitalists.

Skyrocketing Blockchain VC Domain

In its recently published report titled “State of Blockchain” (“Report”) which was published in January 2022, data analytics and market intelligence platform, CB Insights noted that global blockchain startups received a total of USD25.2 billion worth of VC investment fundings in 2021 whereby this is a staggering increase of 713% from the USD3.1 billion recorded in 2020. The astronomical YoY rise in VC investment fundings received by global blockchain startups in 2021 led to the birth of 40 new blockchain unicorns of which there were only 9 as of the end of 2020. With regard to the underlying reasons for the massive jump in VC investment fundings for blockchain startups, the Report noted that global growth in blockchain VC investment fundings was “driven by growing consumer and institutional demand for crypto” as illustrated by the fact that 25% of the USD25.2 billion received by blockchain startups in 2021 went to crypto exchanges and brokerages.

In terms of geographical distribution, United States (US)-based blockchain startups raked in a total USD14.1 billion in VC investment fundings in 2021 which amounted to more than half i.e. 56% of the fundings received by these startups last year. As for market sector distribution, the non-fungible token (NFT) sector led the way in terms of YoY growth with NFT startups receiving a total of USD4.8 billion in VC investment fundings in 2021 which is an astounding YoY increase of 12,878% whereby the Report attributed the NFT funding craze to the subcategories of “gaming, marketplaces and infrastructure.” Following in the lead of the NFT sector is that of DeFi whose startups received a total of USD3.4 billion in investment fundings in 2021 which amounted to a YoY increase of 851% driven by “higher-than-average yield products, more efficient transactions, surging consumer demand, and growing interest from institutions.” Fair to say, the blockchain VC funding domain is on fire and Tokocrypto is set to ramp up the inferno with the venture building elements of Tokoverse.

Photo: State of Blockchain Report / CB Insights

Tokocrypto Goes and Shows the Way

Having been launched in September 2018 as a blockchain startup, Tokocrypto’s exchange has developed into Indonesia’s top exchange with 1.5 million users, USD190,000,000+ daily trading volume and 1.8 million downloads of our mobile application since its launch in October 2020. In terms of scope, Tokocrypto’s ecosystem i.e. Tokoverse spans an utility token (Toko Token (TKO)), an offline community hub (T-Hub), a NFT marketplace (TokoMall) and a crypto education arm (TokoScholar) in addition to our exchange. Notwithstanding Tokocrypto’s developmental journey thus far which has led to the prospects of being publicly listed through an initial public offering (IPO) within the next few years, we have not forgotten our startup roots whereby in line with the circle of life, we are looking to support the growth and development of other blockchain startups. Here are 3 elements of Tokoverse which provide 3 reasons why Tokoverse is the ideal ground zero for budding blockchain startups:-

Element #1 — Leading the Way for Budding Blockchain Startups

In Tokocrypto’s early days as a blockchain startup, we had a backer in QCP Capital which had invested in us since our seed stage. In May 2020, a momentous occasion came about when Binance invested in Tokocrypto and armed with Binance’s capital injection we started growing at a turbo-charged rate whereby our exchange’s average daily trading volume which back in May 2020 stood at around USD700,000 has now risen by more than 270% to reach over USD190,000,000. Now that Tokocrypto become one of the leading crypto market players in Asia and soon the world, we will be putting the experience which we garnered during our startup journey to good use by helping budding blockchain startups fulfill their full potential because as American author, John Maxwell once said “A leader is one who knows the way goes the way and shows the way.”

Photo: Binance x Tokocrypto / Binance

Element #2 — A Global Launchpad for Indonesia’s Blockchain Startups

TokoLabs is a venture building program whose goal is to identify and grow potential blockchain startups into sustainable businesses in the industry. With regard to the incubator component of TokoLabs, it serves as a support system for Indonesian businesses seeking to launch their projects into the world of blockchain through the provision of technological assistance and capacity building measures. As for TokoLabs’ accelerator component i.e. the Toko Sembrani Blockchain Accelerator (TSBA), we have collaborated with venture capitalist partners such as BRI Ventures, which is backed by the largest government-owned bank in the country i.e. Bank Rakyat Indonesia with the aim of providing networking access to fundraising opportunities for local blockchain startups to help accelerate the growth and development of these startups with the goal of bringing them to the world stage.

Photo: Tokocrypto’s CEO Pang Xue Kai (left) and BRI Ventures’ CEO Nicko Widjaja (right) sign a memorandum of understanding (MoU) during the launch of the TSBA program in Seminyak, Bali, on 20 January 2022 / Tokocrypto

Element #3 — Harnessing the Decentralized Exchange (DEX) Framework

Capitalizing on the rising appetite for all things blockchain in Indonesia, TokoLaunchpad would serve as an initial DEX offering (IDO) platform to kick-start local blockchain projects thereby serving as the prime gateway for Indonesians to gain access to new and promising opportunities. In tandem with TokoLabs which pioneers the pre-incubation phase of local blockchain projects, TokoLaunchpad would be facilitating the post-incubation stage of these projects through its array of support functions involving know-your-customer (KYC) compliance and whitelisting of participants. The immense potential of IDO is illustrated by the fact that the returns of IDO projects can go up to 500 times the amount of initial capital investments.

Photo: Top 20 Best Performing IDO in 2021 / CoinMarketCap

The developmental journey of a startup is not a walk in the park as statistically, 21.5% of startups would shut up shop by their first year, 30% by their second year, 50% by their fifth year and 70% by their tenth year. As with so many things in life, the outcome of a startup venture is very much a game of chance in which experience, know-how and expertise can boost the chances of attaining sustainable success that lasts for the long term. That’s why Tokocrypto has equipped Tokoverse with best in class venture building facilities to boost the success rate of Indonesia’s startup domain through the deployment of Tokoverse as the ideal ground zero for budding local blockchain startups.

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