What Blockchain Startups Need to Do to Avoid “Floating Quickly and Withering Quickly”

New Blockchain projects need to be consulted and led by experienced units that know how to grasp new trends to avoid dying prematurely.

As a guest of Binance Blockchain Week Dubai 2022, Mr. Truong Gia Bao - Chairman of DTS commented on the development of blockchain technology in Vietnam. He said that Vietnam is currently in the top 10 markets of Binance in many product lines. In 2021 alone, the Vietnamese blockchain community has reaped many sweet fruits. Many projects built by Vietnamese people have become global icons in a number of fields and have been recognized by international friends.

As the chairman of the DTS Digital Transformation Alliance, having worked and accompanied many blockchain businesses, Mr. Bao pointed out that blockchain startups are completely different from the models of other startups, including calling for investment, product development, etc. Therefore, Vietnamese businesses face many difficulties in finding consultants, especially when there is still no complete ecosystem to serve blockchain technology.

The Chairman of DTS also commented that most of the investment funds for blockchain startups at present are international funds. Vietnamese investment funds are not yet ready to invest in this field.

According to the Vietnam Software and Information Technology Services Association (Vinasa), Vietnam is considered one of the five most attractive economies in the world in providing software export services. DTS experts believe that with the third position in the world, after China and India, in software export, Vietnam has a huge amount of human resources in information technology. With a young workforce, Vietnam will have easier access to blockchain.

However, on the downside, Mr. Bao said that these startups are built mainly on technical platforms, so they will encounter many loopholes in business, operations, etc. "Blockchain projects under 5 years old have a higher mortality rate than other startups. The "early bloom, early fall" of startups will lose the confidence of investors," Mr. Bao emphasized.

The Chairman of DTS also pointed out that in 2021, the growth of many indicators on the blockchain map including: projects, participants, number of supporting units, etc. are very favorable conditions for Vietnam to create new products in the future.

Speaking more about the opportunities for blockchain in Vietnam, Mr. Bao said: “I see the international community starting a campaign to digitize entertainment products globally. Famous players and singers are also participating in NFT production. With the creation of many digital assets from advertising clips, music videos and a large team of artists and designers, I believe that Vietnam has the basis to deploy this product... Especially, the entertainment industry and Vietnamese artists have great influence. Therefore, we can seize this opportunity.”

According to Mr. Bao, to be successful, startups need an experienced organization to lead, support finance, operations, and risk management to help businesses survive for a long time. Under the auspices of the Vietnam E-commerce Association (VECOM), DTS and the Dubai Investment Fund recently cooperated to co-found and invest in BIC - a startup incubator model for startups in the technology sector in Vietnam.

Mr. Bao said that in the coming time, the incubator will focus on finding and investing in technology, blockchain and digital transformation startups, then connecting investors, finding capital, providing strategic advice and supporting development. This will be a bridge between businesses and investors globally, bringing opportunities for cooperation in the early stages.

The unit also aims to maintain a number of activities such as: developing the blockchain community, opening blockchain training courses, providing knowledge from basic to advanced for business owners and technology companies to develop blockchain according to actual needs.

Along with that, this unit will maintain the operation of the alliance of technology investment funds in Vietnam, helping to create collective strength to support technology startups.

“In the coming time, we will make more efforts in connecting international cooperation to bring Vietnamese projects to the international market, and at the same time bring international projects to Vietnamese investment funds,” said Mr. Bao.

In addition, in order to support the improvement of digital transformation capacity of enterprises, DTS will also continue to coordinate with many associations and partners to organize a series of programs to popularize knowledge, provide in-depth training, and provide consulting on digital transformation solutions for enterprises. In addition, the unit also develops digital capacity survey tools, training on e-commerce and digital transformation.

Source: vnexpress