US Crypto Crackdown Leads to Fewer Founders Joining Alliance DAO

Alliance DAO’s Latest⁣ Cohort Reflects Shifting Crypto Landscape

Renewed Enthusiasm Amidst ⁤Regulatory Challenges

The crypto space is abuzz with excitement as the market recovers, and venture‍ investors are pouring money​ into⁢ web3 startups. ⁤According to ​Crunchbase data,⁤ total ⁢fundraising in the⁤ sector reached approximately⁤ $1.9 billion ‍in​ Q1, a remarkable 58% ‍increase ⁢from the previous quarter. However, regulatory ​efforts to control the industry persist, with notable figures like ⁣Binance’s ⁤founder Changpeng “CZ” Zhao facing potential imprisonment and decentralized⁤ exchange Uniswap receiving ⁢an enforcement notice‌ from the SEC.

Shifting Geographic Composition

The ongoing crackdowns in the U.S. have ⁢significantly impacted the⁢ geographic composition‌ of Alliance ​DAO’s applicants. North ⁤America’s⁤ share of⁣ applicants dropped‍ from 45% in H2 2021 to​ just 26% in ​H1 2024. Conversely, Asia’s representation ‍steadily⁢ increased, ⁢accounting for 24% of all applications in H1 ‍2024, up from 14% in H2 2021.

Image Credits: Alliance DAO

Qiao Wang, a⁤ founding partner of ⁤Alliance DAO, attributes‌ this shift to regulations and crypto finding product-market fit in emerging markets.​ As ‍a result, some founders‍ are establishing physical bases in ‌regions with more favorable crypto environments, ⁣such as Hong ‌Kong,⁢ Japan, and⁤ Singapore.

Introducing the Latest Cohort

Alliance DAO’s ‍12th cohort received 1,503 applications, a ‌significant increase⁢ from the previous batch’s 1,083 ⁣applications. With an acceptance rate of just ⁤1.4%, 21 teams were ‍selected, ⁢and 12 of them are ​presenting at today’s demo day. Projects building⁤ on Ethereum remain the‌ focus, although other ecosystems like Solana ‍and Bitcoin are making a ⁤comeback. Popular verticals include decentralized AI, crypto​ infrastructure, ⁢DeFi, and crypto-based payment solutions.

Featured Projects

Villcaso: Permissionless U.S. real estate investing platform that offers fractional ownership to a global audience ‌through a⁤ fully legal permissionless token.

GoBankless: A ‍cross-border payment solution for Africa that utilizes ‌stablecoins to provide instant⁤ settlements without banking ⁢intermediaries, currently serving 50 small ‍businesses ⁣across Mozambique ⁣and South​ Africa, settling $7 ⁢million in payments every month.

As the crypto landscape continues to evolve, Alliance DAO’s latest cohort reflects the industry’s resilience⁢ and​ adaptability in the face of regulatory challenges ​and shifting market dynamics.

Innovative ​Crypto Startups Disrupting Traditional Finance

Wasabi Protocol: Enhancing Crypto Trading ⁣Liquidity

Wasabi Protocol, a leverage trading‍ protocol founded by Eren Derman and ⁣ Kemal Hasan Atay, tackles the liquidity challenges faced by platforms like ‍Aevo and ⁢Hyperliquid ‍in the ⁤booming crypto trading market.⁤ By backing user positions with​ underlying assets, Wasabi ensures sufficient liquidity for longtail ​trading​ of new assets such as memecoins⁤ and NFTs. Since its launch‌ a few months ago, Wasabi’s total⁤ value locked ‌(TVL) ⁢has reached $60 million, with over $200 million in ‍trading volume.

Lulubit: Simplifying Crypto Access in Central America

Lulubit, founded by ⁣ Ianir‌ Sonis,‌ Diego Hernan Cabrera, and ‍ Alan Futerman,⁢ aims to⁢ become the Coinbase of Central America. Despite‍ the region’s rapid ‍crypto adoption, buying⁤ and selling cryptocurrencies remains challenging due to⁢ unreliable P2P networks and high fees on established exchanges. Lulubit enables retail ‍users to buy and sell⁢ crypto from their local banks and⁣ spend through its crypto ‍debit card. The platform also facilitates on-chain ⁢remittances at lower rates⁤ than traditional ‍methods. In less than a year, Lulubit has⁣ attracted over 18,000 users and processed more‍ than $1.3⁣ million in volume in April 2023 alone, showcasing an ​impressive 36% month-over-month growth.

ZwapX: ‍Revolutionizing the⁣ Luxury Watch Market with Tokenization

ZwapX, founded by Yohan ⁢Chiovetta, Noah Chiovetta, and Rocco Di Capua, is transforming ‌the billion-dollar luxury watch market by ‌offering a ‌marketplace for tokenized⁢ watches. By representing physical watches as tokens, ZwapX provides certificates of⁢ ownership and⁤ authenticity, addressing the challenges of scams in peer-to-peer marketplaces and online⁢ authentication issues in B2C platforms. To ‌date, ZwapX has tokenized 44 watches, achieving a ⁤$1.4 million ⁢TVL and a volume of $240,000.

Fractal Payments: Streamlining Cross-Border Payments with Stablecoins

Founded⁢ by Pavel⁣ Skalin, Fractal‌ Payments aims to disrupt ‍the traditional SWIFT system by leveraging stablecoins for cross-border⁤ payments. Fully licensed in the European Union, Fractal Payments claims⁤ to offer transactions that are three times cheaper and six times faster than legacy banking rails. The startup has already facilitated more than $5 million in payments volume and ⁢collaborates⁢ with a network of partners supporting payments in over 60 countries.

Código: Empowering AI Training with Crypto ​Data

Código, founded by Jean-Philippe Emelie Marcos,⁢ Diego Besprosvan, and Jaziel Guerrero, focuses on providing ‍highly curated ‍datasets for training specialized AI models ⁢in‌ high-stake crypto applications. By automatically collecting data through crowdsourcing and subjecting it⁤ to a decentralized review and augmentation process, Código has generated 4,000 dApps and⁤ four million lines of code within​ six months, tapping into ⁤the billion-dollar market opportunity⁢ of AI training⁤ data.

Accrue: Enabling Instant and Affordable Transactions‍ in Africa

Accrue, founded by Clinton Mbah and Adesuwa Omoruyi,⁢ is building a stablecoin-powered payment network to address the costly and slow bank transfers in Africa. By leveraging the continent’s existing network of ⁣mobile tellers, Accrue enables instant and⁣ affordable transactions. With 10% of these ​mobile tellers being stablecoin-savvy, Accrue offers them increased⁣ profit share ​and an⁢ upcoming ⁣token. The startup is already cash-flow positive​ and ​has processed‍ $5​ million in payments.

Fig⁣ Investments: Bridging Traditional Finance‌ and DeFi

Founded by banking veterans Guanzhi Ma ⁢and‌ Tony Qian, Fig Investments ⁢offers⁤ an automated trading desk that tokenizes hedge fund strategies, catering to the growing interest in decentralized⁣ finance (DeFi) services from traditional finance (TradFi) players. By matching TradFi interest‌ in⁢ crypto with ​on-chain ⁤LP interest for returns, Fig claims to achieve ‌a ‍10x scale compared ⁤to its‍ competitors. Since its ‌launch four ‍months ago, Fig’s‍ TVL has grown significantly, demonstrating the potential for bridging the gap ⁣between ⁤TradFi ​and DeFi.

0G: Revolutionizing Modular Blockchain Technology

Introducing 0G:⁢ The Cutting-Edge ​Modular AI Chain

In the fiercely competitive world of modular blockchain, 0G ⁢ is making waves with its innovative data availability layer. Founded by Michael Heinrich and Ming⁢ Wu, 0G is‌ on ⁢a mission to revolutionize ‍Ethereum transaction scaling.

Outperforming the Competition

0G’s unique technology boasts performance that is a‌ staggering 50,000 times⁣ faster than industry leader Celestia while being 100 times ​more ⁤cost-effective than its ‍rival. This groundbreaking solution positions ⁢0G as a​ formidable contender against well-funded projects such as a16z-backed⁢ EigenLayer, Celestia, and Polygon’s Avail.

Stage: Recently closed a 20x oversubscribed pre-seed ⁣round; raising seed

Proto: Crowdsourcing Accurate⁢ Navigation for Developing Countries

Introducing Proto: The On-Chain Google Maps Alternative

Founded by Akshay Yeleswarapu, Proto aims ⁢to tackle the inaccuracies of ‍Google Maps in developing countries, where dense ⁢cities and rapid urban development pose​ unique challenges.

Incentivizing Crowdsourced Mapping Data

Proto’s⁢ innovative approach involves crowdsourcing mapping⁢ data, allowing users to easily contribute images using their mobile phones. Contributors are rewarded with​ tokens, creating an incentive for​ accurate and up-to-date information. Since ⁣its launch in late January, Proto has already‍ achieved an impressive 75% of ⁤Google Maps’ coverage of Bangalore‌ through a network of 400 users.

Stage: Raising seed

Dinari: Unlocking Global Access to U.S. Securities

Introducing Dinari: The Global Tokenized Stock Exchange

Founded by Gabriel Otte,⁣ Chas Rampenthal, and Jake Timothy, Dinari is revolutionizing ‌access‌ to U.S. securities for non-U.S. investors. Registered with the SEC,⁣ Dinari⁢ enables users to‌ purchase stocks using stablecoins, overcoming the high barriers ‌of entry ‍associated with traditional brokerages.

Tokens Backed​ by Real-World Stocks

Dinari’s ‌unique advantage lies in its⁤ tokens⁤ being ‌backed by real-world stocks, setting​ it apart from early attempts​ at tokenizing securities that restrict certain features. The platform’s total value locked (TVL) has already grown‍ to an‌ impressive $500,000.

Stage: Closed⁢ a $10 million seed round; ⁤raising Series A

Alliance ⁢DAO: Connecting Crypto Experts with Cohorts

Alliance DAO is​ bringing together a diverse‌ range of⁢ crypto experts to‌ share their domain ​knowledge with cohorts. Among the⁣ guest mentors are:

• Jacquelyn Melinek, founder of ⁣Token Relations and former crypto reporter at ‌The Zero Byte
• Jason Yanowitz, founder of Blockworks
• Ming Ng, founder of‌ Jupiter
• Greg DiPrisco, founder‍ of Ajna and M^0 Labs
• Seung Yoon “SY” Lee, founder of Story Protocol
• David Vorick,‍ founder of Sia and‌ Glow
• Ilja Moisejevs & Richard⁢ Wu, founders‌ of Tensor