Explority’s research revealed that 90% of all blockchain startups fail, but blockchain development companies Itransition, MobiDev, and Aplana Software Services will reverse the situation.
Explority, a Colorado-based analytical and research firm, revealed that 90% of all blockchain startups established in 2014-2018 had already collapsed. As part of this global blockchain market study, Explority compiled a list of blockchain development companies that proved to be the most successful in starting a new blockchain-related project.
Since blockchain has become quite a buzzword, the speed at which blockchain-related companies are emerging is unprecedented. However, Explority’s research seems rather disappointing for those who were thinking of starting their own blockchain project: only 10% of the blockchain startups launched in 2014-2018 are still active today.
The major reasons for such poor records of blockchain startups are the following:
1. Popularity is hazardous
With all of its security and innovative power, blockchain became a star of the show. According to Deloitte, 39% of the surveyed companies reported that their organization was going to invest at least $5 million in blockchain development in 2018. As a result, the blockchain market witnessed an enormous influx of new entries. Most of them lacked relevant business and technological expertise and quickly got lost in the oversaturated market.
2. Customers don’t really need so much of blockchain
Despite all the hype, the actual use of blockchain and cryptocurrency is not so high. Over the last 24 hours, the Bitcoin network processed a little more than 200,000 transactions. Compare with Visa: every day it handles around 150 million transactions. Hence, one more reason for so many failures lies in the violation of the law of supply and demand: the first exceeds the latter.
Cooperating with an experienced and reliable blockchain development firm is a possible solution to the problem. Explority analyzed hundreds of blockchain development companies in order to help new market entries wanting to create a long-living blockchain startup to find a decent technological partner. Explority’s experts relied on carefully selected market criteria such as companies’ blockchain expertise, their major clients, offering strategy, market responsiveness, and online reviews. After the team collected and analyzed all the data, they compiled a rating of the top 20 blockchain development companies that deliver quality development services. All of the shortlisted companies have portfolios that contain dozens of blockchain projects that are still active today.