20+ Blockchain Wallet Startups Fighting for Crypto Traffic Portal in China
As crypto wallet usually being the first app that crypto traders installed, the fight for the traffic portal has been intense. ImToken is taking the lead with over 50% market share but more new-comers are on the way.
According to the official statement of imToken, the mobile app has 2 million monthly active users. This figure is said to have exceeded 50% of the total market volume. According to Netease Technology, the number of cryptocurrency trader in China is currently between 3 million and 5 million.
The ambition of imToken is not limited to domestic market, they are turning their attention to the world. Their goal in 2018 is to entertain over 10 million users in the world—the total number of global cryptocurrency traders is around 50 million.
Luo Yajie, PR Director of ImToken, has been travelling around the world. From April 23 to April 26, she was in Beijing and met with 4 medias every day. Then she would fly to Singapore, where imToken headquarters was registered, and began to meet with the international medias. At the end of May, imToken will hold an international media conference in Singapore.
imToken is obviously taking the lead while more wallet startups are eying on the Chinese domestic market. These new startup teams don’t take imToken as invincible opponents. They think imToken’s product is not good enough. It just happens to be lucky to catch up with market opportunities. The market is still a blue sea.
Kcash is second in the line. Their target is to own 1 million users in June and 3-5 million by the end of 2018.
This is a very ambitious goal. Kcash was officially launched in September 2017 and has been running for nearly 8 months. The current number of registered users is 700,000. To achieve the goal, the team needs to double the number of registered users within two months, and double again within six months.
Kcash is confident for a certain reason. When imToken only supports ERC-20 tokens based on the Ethereum network, Kcash can support seven or eight tokens on public blockchain. Therefore the wallet acquired large number of users in its early stage. In addition, during the Spring Festival, Kcash launched red envelopes campaigns with sponsors, which helped Kcash to gain 200,000 active users.
Kcash will continue a series of marketing campaign like online product launch, 0 tx fee, red envelopes before the next round fund-raising in June.
Zhu Xuejiao, founder of Kcash, thinks that now is an important “strategic period”. He predicted that:
” In about two to three months, the bull market will come. If not, the bull market won’t be too far.”
This is also the viewpoint of many cryptocurrency traders. The markets seemed to be bearish with the massive correction in January 2018. However, the rise in April changed their mind. Many people inclined to believe that the bull market is imminent.
The strategy of Kcash is also learned by other startup teams. By supporting as many public blockchains as possible, many wallet products are emerging everyday, It’s a game of speed and security.
Instead of creating wallet with “seed phrase”, more and more wallets have followed the old fashion way of traditional APP – account and password. It’s easy to use and friendly to new comers. But it sacrifice security to a certain extent. “seed phrase” method means that user’s assets are liable for the safety of the wallet. The “account and password” method means the assets are stored on the app’s server, which is like storing money on exchanges. The ensuing risk is that hackers may be eyeing the money – check out the hacking incident of exchanges and you will understand why.
Mao Shixing, founder of Cobo Wallet, told reporter:
“So we designed a very complicated mechanism to ensure wallet security. This is a challenge, it’s a barrier, it’s a core competency. To put it in simple words, when you such things properly, you will secure your position in the industry. Even if we don’t do it, someone else will solve the problem because of the market demands. Whoever can solve this problem will become the leader in this industry.”
On March 27, Kcash released its first “star product”. Users get dividends by depositing certain tokens for a certain period. Cobo wallet offers users with profits through POS minting. Yeecall offers cross-border money transfer. It’s estimated over 20 startup teams are developing wallet products. With different features, these mobile apps are discovering and satisfying customer needs.