Israel’s blockchain community is expecting more development in the field of Blockchain in 2019. Blockchain startups may multiply. Developers and academics are relying on for fresh, transforming uses of blockchain technologies.
Growth of blockchain in Israel
Local blockchain startups in Israel are concentrated on the FinTech, protocols/core infrastructure, and security sectors, according to data on the Israeli Blockchain Association website. Roman Gold, founding partner of the Israeli Blockchain Association, told Forbes:
The Israeli blockchain industry is currently experiencing both a boost and a transformation. On the one hand, we see unprecedented growth among blockchain startups, but on the other hand, many of them are skipping ICOs in favor of equity financing. Today there are fewer startup founders coming out of morally questionable markets, such as Forex, binary trading, and gambling. Instead, more institutional players are starting to enter the market. Thus, the market is going through a self-purification.
European investment bank Benson Oak, Swiss VC fund Lakestar, and South Korea’s Kakao Investment have all put money in Israeli startups focused on blockchain in the past year to aid the development of the sector. High profile angel investors like Naval Ravikant, Ethereum Founder Vitalik Buterin and Polychain Capital have also invested in some startups.
The Blockchain Academy and Blockchain Incubator, run by Blockchain Israel and Microsoft have also started their first Blockchain Incubator venture. The incubator would give workshops to help guide entrepreneurs and teams grow in the blockchain community.
Microsoft and Blockchain Israel have also announced that the second class of its blockchain education program, Blockchain Academy, for R&D leaders, CTOs and senior developers to master the tools to help early-stage startups thrive, will begin on January 28, 2019. Many in the Israeli blockchain association is optimistic about the development that is set to take place in the space of blockchain in 2019.
Death of ICOs
Private investment into the sector has also increased this year with so many ICOs failing to deliver last year. While 2016 and 2017 were all about ICO offerings and new startups using crypto to raise funds. Many startups all around the world who had used crypto and blockchain technology to raise funds either turned out to be frauds or couldn’t deliver what they promised. Liggett, who blogs about blockchain developments says
The ICOs we saw in 2017 and 2018 are gone. They’re not coming back. This was a situation where you could say, ‘hey I might decide to open something, I’ll give you a token. If I don’t open, then too bad. There’s no recourse.’ You can’t do that anymore. ICOs are not coming back.