How Chinese VCs Could Boost Home Grown Crypto Platforms

How Chinese VCs Could Boost Home Grown Crypto Platforms 1

Recent developments in the People’s Republic have not just excited Bitcoin holders. A bullish wave of momentum has flooded back into the blockchain and crypto scene as venture capitalists return to take a second look at what’s hot in the fledgling industry.Chinese Crypto Projects Get a BoostThe 2018 bear market was pretty brutal and as much as 90% of China’s venture capital fled the scene. This year has seen a solid recovery in the industry as total crypto market capitalization has gained almost 100% since the beginning of the year.Recent bullish comments from president Xi Jinping had added to the momentum when he said that China needs to embrace the technology in order to innovate. Bitcoin surged 40% over night and related technology firms saw large increases in stock prices. Additionally Chinese cryptos such as NEO, VeChain, Tron and Bytom surged on the developments.According to Chinese financial data tracker 01Caijing, Chinese blockchain and crypto startups raised $368 million via 71 funding deals, during the first six months of 2019. Reports indicate that funding is flowing back into the sector and this could be good news for home grown crypto projects.NEO backed Neo Global Capital announced that they would be raising a second fund of about $50 million. The first fund, founded in late 2017, had returns of 7-8 times according to Neo Global Capital partner Tony Gu.According to CB Insights mining hardware giant Bitmain is China’s most well-funded crypto company with Hyperchain coming in second. The firm develops a host of enterprise blockchain products and distributed ledger technologies. Last month it was reported that Hyperchain has plans to bring blockchain to China’s national power grid.Other notable VC investments include the $500 million Fundamental Labs fund which backed industry giants such as Coinbase, Canaan Creative and Binance. Earlier this year the fund invested $44 million into Bitcoin mining that could increase the bitcoin network’s total hash rate. VC firm Parallel Ventures also invested around $15 million in Bitcoin mining hardware this year.Managing partner of Fundamental Labs, Howard Yuan, estimated that there were thousands of VC funds following the 2018 crypto market peak but just a handful left today. The scene has matured somewhat though and the funds that do remain have evolved to find more sustainable investments.Xin Jiang, investment manager at one of China’s largest firms, Fenbushi Capital, told Coindesk;“Before the market crash, investors didn’t evaluate projects carefully because token prices kept going up. Now investors need to truly find value through more vigorous research and due diligence.”The passing of new cryptography regulations will also add to the bullish sentiment in China as the country strives to remain ahead of its competitors. Its home grown blockchain projects are likely to reap the rewards from this new wave of investment and positive sentiment from the government.Image from Shutterstock

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

Related Posts

E-Crypto News Executive Interviews

Crypto Scams

How Do Scammers Entice Their Prey?
May 10, 2022
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
Beanstalk Farms Loses $80M In A Massive DeFi Governance Flash-Loan Hack
April 23, 2022
Joon Pak Head of Crypto at Prove talks to Us about Crypto Fraud And More
April 11, 2022
Mintable CEO Zach Burks Talks to Us about the Opensea Stolen NFTs and Their Recovery
March 21, 2022
Crypto Crime
Crypto Crime Surges To Record Highs As Thieves Follow Market Buzz – Chainalysis 2022 Report
February 24, 2022

Automated trading with HaasBot Crypto Trading Bots

Blockchain/Cryptocurrency Questions and Answers

Roundtable Interview-What is the Effect of The Russia-Ukraine War on Cryptocurrency Prices?
March 4, 2022
How Does Bitcoin Casino Work + 2021 Beginner’s Guide
November 8, 2021
How to Buy and Sell Cryptocurrency
November 8, 2021
What Are Bitcoin Futures And How Will They Work In 2022?
November 4, 2021
The Unconventional Guide to Ethereum
October 28, 2021

CryptoCurrencyUSDChange 1hChange 24hChange 7d
Bitcoin30,250 0.47 % 0.23 % 0.07 %
Ethereum2,060.8 0.62 % 0.29 % 8.40 %
Tether1.003 0.23 % 0.08 % 0.26 %
USD Coin0.9989 0.16 % 0.08 % 0.04 %
BNB303.24 0.53 % 0.69 % 0.65 %
XRP0.4350 0.80 % 0.90 % 12.07 %
Cardano0.9566 0.22 % 0.68 % 6.96 %
Solana55.70 0.78 % 0.48 % 12.41 %
Binance USD1.003 0.23 % 0.14 % 0.58 %
Polkadot10.85 0.28 % 0.36 % 0.46 %

Bitcoin (BTC) $ 30,227.00
Ethereum (ETH) $ 2,063.31
Tether (USDT) $ 1.00
USD Coin (USDC) $ 1.00
BNB (BNB) $ 303.32
XRP (XRP) $ 0.434041
Cardano (ADA) $ 0.569083
Solana (SOL) $ 55.89
Binance USD (BUSD) $ 1.00
Polkadot (DOT) $ 10.86