MAVEN 11's TEN FOR 2020

2019 has in some ways been even more extreme than 2018. There is a growing hope that we are in the last stage of an extended bear market. Fundamentals are pointing in that direction, with the ever discussed halving of Bitcoin inflation to take place in May. Reflecting back on 2019 we have seen two major trends over the course of the past year. Both of which we expect to last well into 2020 and beyond. Regulators are taking an increasingly active stance towards token issuance, cryptocurrencies and the ‘institutionalization’ of Bitcoin. The regulatory hammer…


Facebook and JP Morgan are launching major blockchain initiatives. If such corporate giants are entering the blockchain industry, do blockchain start-ups still have a chance to compete? And what does this mean for funds that invest in this industry?

Microsoft, IBM, Samsung, the New York Stock Exchange, ING Bank, Ernst & Young, Amazon, Alibaba and Twitter are all part of a long list of big names that are actively involved in the blockchain industry. Relatively recent additions to this list are JP Morgan and Facebook. JP Morgan is going to launch , a USD-backed digital coin to speed up internal…


2018 was a turbulent year for blockchain, in which the market saw a strong correction in reaction to the hype of 2017. As price is what media reported on mostly, one might almost forget the fundamental progress the industry as a whole made last year. 2019 is going to be another building year, and a year in which we will see initial adoption of blockchain technology in some industries. What will be the major building and adoption trends in 2019?

1 — RISE OF THE EARLY ADOPTERS

If we plot current blockchain adoption in Roger’s bell curve[1] for adoption of new technologies, it would look like this:


We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”

Amara’s Law

In 2017 many blockchain projects raised a lot of money on a proof-of-concept and a roadmap mentioning going “live” in 2018. 2018 came, the projects went live, and the markets crashed. People were disappointed by the lack of adoption after this new technology launched. Articles like this well written one by Kai Stinchcombe were published, stating that blockchain failed to attract adoption because the idea behind blockchain is fundamentally flawed.

While that article makes some good observations…


Comparing the second half of 2017 with the second half of this year, we see two important trends in the market that lay the foundation for a more healthy blockchain market. One is the outflow of retail capital combined with inflow of professional capital. The second is the emergence of security tokens. Let’s dive into both to see why these trends will contribute to a more healthy market looking forward.

MORE PROFESSIONAL MARKET

Most of the capital that left the market since the start of this year is retail money. These private investors often entered the market during the bull run of 2017…

Jochem Wieringa

Head of Research @ Maven 11 Capital — www.maven11.com

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