The crypto industry is undergoing regulatory reform in many parts of the world to make the industry safer for its members. Countries that have launched this framework will see an increase in Web3 startups, bringing business and opportunity to their citizens. A recent report from the Blockchain Startup Accelerator Alliance claims that Europe, Asia and North America have recorded significant expansion of their Web3 startup ecosystems.
Europe has introduced a comprehensive set of rules called the MiCA framework to control the crypto sector in its region. In Asia, countries like India, South Korea and Japan are stepping up their efforts to implement laws that make crypto companies more transparent. North American regions like El Salvador, where BTC is legal tender, are also supporting crypto-friendly startups.
“Overall, North America, Europe and Asia remain the Big Three, with each region accounting for 1/4 to 1/3 of all startups,” the alliance report said.
In the United States and Canada, however, the winds blow from the other direction.
“In the first half of 2024, the percentage of startups from the US and Canada was at an all-time low. This is likely due to US regulatory uncertainty and real world adoption of crypto in emerging markets,” the report said. said
More trends observed
Startups combining AI and crypto appeared in the Web3 startup category, attracting interest from potential founders. According to the report, such startups have been associated with the NFT sector.
In addition, Web3 projects exploring decentralized finance (DeFi) are also growing from “some public enthusiasm.”
The report showed that Web3 projects are also rapidly exploring use cases for social, payment systems and decentralized autonomous organizations (DAOs).
According to the results, 30 percent of founders who start Web3 startups have work experience in large technology companies. The alliance classifies “major technology companies” as part of the SandP500 group. The results also revealed that only about 1/10 of the Web3 founders had previous experience in starting a business, which shows that technical specialists who aspire to entrepreneurship are interested in the possibilities of Web3.
Blockchain, cryptocurrency, NFTs and the metaverse form the set of technologies that make up the Web3 sector.
The report thought otherwise, stating that 39% of all Web3 startups have two founders and less than 40% have sole founders.
“Among startups with two or more founders, about half split their equity equally and half unequally. Nearly 3/4 of startups operate entirely remotely,” the report says..
