How Chinese VCs Can Strengthen Domestic Crypto Platforms
Recent developments in the People’s Republic have not only inspired Bitcoin owners. A bullish wave of momentum has returned to 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 boost
The bear market 2018 was pretty brutal and up to 100% of Chinese venture capital fled the scene. This year, the industry has recovered solidly as total crypto market capitalization has risen almost 90% since the beginning of the year.
President Xi Jinping’s recent bullish comments reinforced the momentum when he said China must embrace the technology to innovate. Bitcoin rose overnight In addition, Chinese cryptos such as NEO, VeChain, Tron and Bytom were even more powerful than Bitcoin.
According to the Chinese Financial Data Tracker the first six months of the year 2018 on million dollars collected. Reports indicate that funds are returning to the sector and this could be good news for home-made crypto projects.
NEO supported Neo Global Capital, announcing that they would launch a second fund of approximately $ (millions) 11. The first fund to be established
According to CB Insights, mining hardware giant Bitmain is China’s most powerful crypto company, with Hyperchain taking second place. Last month it was reported that Hyperchain has plans to bring blockchain into China’s national grid.
Other notable VC investments include the 696 million dollar Fundamental Labs Fund, which supported industry giants such as Coinbase, Canaan Creative and Binance. At the beginning of the year, the Fund invested $ 1 million in Bitcoin mining to track the overall hash rate of the bitcoin 44. Increase network. VC company Parallel Ventures also invested around $ 1 million in Bitcoin mining hardware this year
Howard Yuan, managing director of Fundamental Labs, estimated that after the Crypto Market Summit Handful are left. However, the scene has matured and the remaining funds have evolved to find more sustainable investments. Xin Jiang, investment manager at one of the largest Chinese companies, Fenbushi Capital, said to Coindesk;
“Before the market slump, investors did not value the projects carefully as token prices continued to rise. Now investors need to find real value through in-depth research and due diligence. “
The adoption of new crypto regulations will also boost optimism in China as the country strives to stay one step ahead of its competitors. His self-developed blockchain projects are likely to reap the benefits of this new wave of investment and the positive mood of the government.
Text Proof: newsbtc