8 Thoughts Following “Crypto Asia TV” Episode #1 — Featuring Hashkey Capital (On 4/28/20)
The first half of the show featured U.S. based Sunny He and Asia based Jupiter Zheng giving an overview presentation of Hashkey and the…
The first half of the show featured U.S. based Sunny He and Asia based Jupiter Zheng giving an overview presentation of Hashkey and the Asian VC crypto ecosystem. The second half of the show featured Q&A from the audience. You can view the entire event below:
Or you can read the 8 highlights below:
#1 Hashkey Capital Is Part Of A Unique Blend of Traditional Finance, Fintech, & Blockchain Assets
Hashkey’s parent company, Wanxiang Group, is a multi-national conglomerate with over 40,000 employees. In addition to significant holdings in the agriculture and automotive sectors, Wanxiang offers a wide array of traditional financial services:
In 2011, Wanxiang began aggressively expanding in to Fintech:
Then, in 2015, Wanxiang began investing in the blockchain/crypto space, including the first corporate investment in the Ethereum Foundation, and Waxiang Blockchain Lab, an in-house builder of blockchain applications that has grown to over 300 developers.
#2 Wanxiang’s Blockchain Labs Is Developing 8 National Blockchain Initiatives In Mainland China
Interestingly, the Labs is helping develop both permissioned and permissionless blockchain applications. Among the projects that have gotten the most attention, PlantOn is leveraging the blockchain to develop a “smart city” in Hangzhou, home to more than 10 million people. The project uses multi-party computation (MPC) and other technologies, to ensure the privacy of sensitive data.
#3 Wanxiang Established The Hashkey Brand In Hong Kong in 2017 To Enable Institutions To Invest In Blockchain Innovation
The Hashkey Digital Asset Group is a regulated and fully compliant entity providing a full array of crypto investment services including an exchange, a digital wallet, a custodian, trading services and an OTC desk.
Hashkey Capital was started in 2018 as the investment arm of the Hashkey Digital Asset Group, and currently oversees two venture funds with $130 million under management.
#4 Through 2019, Hashkey Capital Has Invested In 25 Projects Across The Blockchain Spectrum
Hashkey Capital is focused on early stage investments across the blockchain ecosystem, including base layer and second-layer blockchain infrastructure, financial infrastructure, application layer, and tools.
#5 PWC Data Highlighted That While Global Crypto Dealmaking Fell In 2019 v 2018, Asia & EMEA Picked Up Share from The Americas
2nd Global Crypto M&A and Fundraising Report — April 2020
Belwo you can see Hashkey’s internal research which highlighted that the downward trend in crypto dealmaking continued in Asia in the 1st quarter of 2020, with total deals (including both fundraising and M&A) dropping 75% vs. Q1 2019. The deals that were completed showed a shift to infrastructure, with the countries of Singapore and Taiwan picking up the most share:
Internal Hashkey Data
# 6 There Are Six Active Crypto VCs In Asia And They Focus On Public Chains & Trading Related Investments
The four VCs on the top row above are crypto only VCs. The two VCs on the bottom row are also active crypto investors, but they actively invest in non-crypto companies as well.
Per the table below, the leading Asian VC have tended to invest most actively in public chains the thee crypto trading ecosystem, while exhibiting limited interest in the security tokens space:
Hashkey highlighted the 10 projects below for each receiving funding from at least two of the leading VCs highlighted above:
#7 The Crypto Ecosystem In Asia Is Being Driven By A Broad And Diverse Group of Entities
While the crypto investment ecosystem in the U.S. and Europe feels more confined to crypto focused VCs, the Asian crypto ecosystem is being propelled forward by a large and diverse group of entities:
Tech companies and financial institutions are playing major roles in terms of defining the standards, and providing blockchain-as-a-service to multiple enterprises. Small and medium sized companies are also playing significant roles in driving the industry forward.
The takeaway is that the ecosystem across Asia is broader than it is elsewhere, with many of the initiatives receiving little notice outside of Asia.
#8 The Chinese Government Remains Committed To Blockchain Technology
In the Q&A portion of the show, a question was asked regarding the governments continued commitment to blockchain technology given COVID-19 and it’s impact on shifting government priorities around the world.
Both Sunny and Jupiter stated that the Chinese central government remains committed to blockchain technology as next-generation IT infrastructure for linking secure databases (e.g.. IoT) via 5G to cloud and data management infrastructure. They also discussed how central government initiatives are being supplemented by local governments programs that are also deploying significant capital in to fostering the blockchain ecosystem.
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