Saying farewell to 2019
This year was an eventful one for blockchain. A few scams collapsed and other ventures were at risk of failing, while a number of large investors went cold on the business and key people seem to be running for the exits, judging by headcount. We never saw it coming. In 2018, the sense was that 2019 would be a banner year. Market expectations remained and new projects were about to be launched, so it is somewhat unclear what the problem could be. Some said that DApp could fall through, but no one could predict the precise nature of the collapse. And neither can anyone project the impact of the collapse of blockchain projects. Same message from 2019 As bright as it might have seemed, 2018 was also full of uncertainties. Most of new the blockchain projects were announced in 2018, and the results were set to take hold in 2019. But so many outcomes failed to meet the initial promise. Strictly speaking, 99 percent of the projects fall into that category. Putting aside the implementation of a planned roadmap, there were cases where the heads of the companies misappropriate investment funds. A good outcome would be for the U.S. SEC to punish the heads, but in some cases, it is hard to know their whereabouts. The guideline for the penalty also remains murky. What happens when you leave the results to the future Then, what is the problem? And who is to blame? The chronic problem often seen in new businesses occurred more dramatically in the blockchain scene. Cryptocurrency, which is the medium in the industry, contributed to the fate. Many projects bet on the bright future of cryptocurrencies, and the operators kept delaying their promises. Investors trusted the words, given that the crypto market still appeared alive. Entering 2019, however, numerous projects were nowhere to be seen. Only the name of a corporation is left, while its community and service is shut. The government took a back seat. A bill aimed at legalizing cryptocurrency is pending at the National Assembly. If it fails to pass by April next year, the bill should be drawn from scratch. In the process, irresponsible projects will keep coming through. Find hope in the midst of problems Still, it is meaningful to find hope amidst despair. Following a series of scandals, the authorities in and outside of Korea just started flexing their muscles. The U.S. Congress is on track to devise a law for cryptocurrency, and the advanced financial hubs of Singapore and Switzerland revamped their guideline. Korea will also need to provide specific guidelines. The moves were made possible because different problems emerged. Against this backdrop, blockchain businesses will need to operate in a more transparent way. Some operators might be kicked out, and new players will come in. One might expect that many left blockchain companies on bad terms, but in many cases they have moved to different industries for fair reasons. They move to top-tier companies and take responsibility for finance or technology. This means that the blockchain industry still has much talent. Investors have become more prudent. They don’t just put their money after browsing a presentation or a business plan. After going through a series of scandals, they sometimes investigate dubious scams. With more cautious investors, the blockchain businesses won’t be able to go easy on their business proposals.