According to new estimates, investment in cryptocurrencies in startups in Russia increased 10 times, thanks to entrepreneurs who produced more than 100 crypto-based projects throughout 2017.. People outside the crypto money industry are still more cautious about this area.. Only 8% of this audience is willing to pay part of their salary in cryptocurrencies. Still, Russians remain optimistic about Bitcoin, and many believe that it will reach higher price a month from now.
From $20M to $200M
Startups in Russia have trouble finding money the traditional way, as banks are wary of projects that pose a high financial risk.. Most of these banks want mortgages to make loans. Those who provide capital to startups offer terms that are not in the best interests of start-ups.. While life is like this and the popularity of cryptocurrencies is increasing, many Russian startups are forced to turn to ICOs.. Experts cite the lack of strict regulation as the reason behind this massive growth.. Although this makes it easier to raise money through ICOs, it is somewhat inconvenient for the safety of investors.. Cryptocurrency investment in Russian startups over the past year has increased 10 times, reaching $200 million. In 2016, only $20 million was raised.
It is estimated that one out of every 5 ICOs launched on the market now is organized by the Russians.. A total of $310 million was raised from the token sale in Russia, according to a recent study, putting Russia just behind the United States and China.. 11% ($260 million) of total capital raised through ICOs in the past four years has been raised by Russian project teams. Among the most notable crypto-capitalized projects are the mobile gaming platform MobileGo ($53 million), the Russian Mining Company ($45 million), and the supercomputer SONM ($42 million).
Cryptocurrency funding The area where it comes to the forefront is the average profit return area.. According to data published by CryptoBazar, some projects have a profit return of up to 30,000%.. Behind the projects being so profitable lies both the increasing popularity of cryptocurrencies and their skyrocketing prices over the past year.
Regulation to Change Profits and Risks
Of course, it is worth investing in a project and making a very serious profit. there is no guarantee. Early investments through ICOs can also lead to serious losses.. This is exactly why Dmitriy Laraichev, founder of cryptocurrency bank Wirex, thinks that ICOs will never completely replace “difficult and expensive” IPOs.. The market cap of cryptocurrencies is still quite low compared to this, but thanks to the investment opportunities in Bitcoin and other coins, a lot of new investors are entering the market. warns that it favors entrepreneurs more than investors. There is still no clear answer from the authorities on taxation within the regulations.. However, some regulations have been proposed and if these regulations are implemented, Russia will put a limit on the money that can be raised by a single ICO and the individual investment that can be made.. Authorities in Moscow liken token sales to crowdfunding for small companies and micro-investors.. Regulations prepared by the Ministry of Finance and the Central Bank are expected to address legal disputes between the parties involved in ICOs.
Workers Are Both Cautious and Optimistic
Ordinary Russian workers, entrepreneurs in the cryptocurrency sector and on this subject they don’t share the same passion. A recent study revealed that more than half of Russians are aware of Bitcoin.. Results from another study showed that only 8% of survey respondents are willing to receive part of their salary in cryptocurrency.. The percentage of those who are willing to receive all but not part of their salary with crypto money is only 2%.
1600 people participated in the survey conducted between 18-20 January.. According to data published by job search site Superjob, three-quarters of respondents said they prefer to be paid in fiat money.. However, there is still a trace of optimism.. When asked what the price of Bitcoin will be on March 1, Russians answered on average $12,507.
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