Several large financings appeared in the market OKX Ventures focuses on three major areas

Recently, under the influence of many news, the trend of the crypto market is confusing and the trend is difficult to discern: on the one hand, the situation in Russia and Ukraine is still unclear, and there is the possibility of escalating the conflict again. At that time, the continuous outflow of funds with hedging needs will make Financial markets such as stocks were hit again. Moreover, the rising prices of energy such as crude oil will also exacerbate the continued upward trend in inflation. The Fed raised interest rates for the first time since December 2018, raising the benchmark rate by 25 basis points to a range of 0.25%-0.50%. The more influential shrinking table will announce the corresponding plan as soon as May. On March 22, Powell announced that the Fed would raise interest rates by more than 25 basis points if needed.This means that in the next two meetings, the Fed is likely to further raise interest rates by about 75 basis points. In the process of curbing inflation, the liquidity in the market will be further reduced. When the liquidity is not enough to support the market to continue to strengthen, then most of the investment targets will be affected. On the other hand, there have been several large-scale financings in the market recently, which also shows that the market capital is still abundant and that investment institutions are strongly optimistic about the market or some sectors.

Large-scale financing emerges, and Web 3.0 narrative is grand

In 2021, with the continuous strengthening of the encryption market and the promotion of the breaking effect of upper-layer applications such as NFT, a large amount of funds will pour into the encryption industry. In the middle of last year, the total amount of funds invested in the encryption field increased by more than 360% year-on-year, which is the fastest growth year. And in 2022, investment in the crypto industry is still going strong. According to incomplete statistics, there have been more than 100 financing events in the market in the past two weeks, of which 11 have raised more than 100 million yuan, and the accumulated funds have exceeded 4.619 billion US dollars. Crypto funds raised a total of $1 billion, Haun Ventures raised $1.5 billion to drive Web 3.0 development, Yuga Labs (BAYC parent company) closed a $450 million round at a $4 billion valuation, and Ethereum infrastructure developer ConsenSys (small Fox parent company) $450 million, digital real estate platform Roofstock $240 million, public chain project Aptos (led by the former Facebook Diem team) $200 million, clearing bank ClearBank $230 million, NFT expansion solution Immutable $200 million USD, USD 150 million from Optimism, the second-layer solution of Ethereum, USD 100 million from FanCraze, a digital cricket NFT collectibles platform, etc. There are 26 financings with a financing amount of more than 10 million USD, and the accumulated capital is about 720 million USD, among which the attention The higher ones are: $92 million from the lightweight blockchain protocol Mina, $25 million from the blockchain game platform C2X, $88 million from the digital asset custodian Hex Trust, $43 million from the Bitcoin mining company Blockmetrix, etc. .


The above financing projects cover wallets, public chains, Layer 2, NFT, chain games, DeFi, Web3.0 and other sectors, among which Web3.0 has become a beachhead for a large number of VCs. In this regard, the person in charge of OKX Ventures said: Web3.0 is the third-generation Internet protocol that uses blockchain and other technologies to create readable, writable, and value-transmitting Internet protocols. Driven by this concept, the value of the blockchain itself grows rapidly. At the same time, Web 3.0 has a very grand narrative, including many very imaginative functions and concepts, including the protection of user privacy, data assetization, creative rights and the introduction of free markets, all of which are changing human production relations and releasing huge Productivity, Web3 can already represent the evolutionary direction of human technology at a theoretical height. Growth in traditional investment has slowed. The growth rate of the traditional VC investment market represented by the Internet, manufacturing and real estate is slowing down and opportunities are decreasing, so it is not surprising that VCs are concerned about Web3.0. Over the past decade or so, Internet-based services have tended to be centralized. Today, a handful of companies control the platforms that search, store personal data, manage online identities, and communicate. Web3.0 is more ambitious than Web2, because Web2 is companies trying to get value from people, while Web3.0 is community creating value for people. Web 3.0 democratizes the Internet, it will create a more level playing field, and will change and subvert existing business models and people’s way of life.


It can be seen that the recent financing of the industry, whether it is the number of transactions, the cumulative amount, or the influence of the leading projects, has greatly improved compared with the previous ones. During the statistical period, the tens of millions of financing projects accounted for more than 1/3 of the total number, and the cumulative financing amount exceeded 5 billion US dollars. Institutions that are more sensitive to trends and market changes choose to continue to increase their weight at this node, showing long-term optimism for the encryption industry. Bridgewater, the world’s largest hedge fund, is also planning to invest in a crypto fund for the first time, CoinDesk reports. This is the first signal from the fund that it is taking crypto assets seriously. It is reported that the total asset management scale of Bridgewater Capital exceeds 150 billion US dollars, accounting for about 7.8% of the total crypto market value. According to the Ouyi market, Bitcoin rebounded strongly and continued to rise above the $48,000 mark under the stimulation of the news.


What areas of the market are worth focusing on?

As we all know, the encryption industry has the characteristics of high frequency of hot changes and rapid development of innovative applications. It is an ideal investment state to understand the development trend of the industry, discover potential opportunities, and deploy high-quality projects in advance. Regarding how to assess whether a project is of high quality, the relevant personnel of Ouyi OKX Ventures said: OKX Ventures’ dream is to discover and invest in blockchain projects with cutting-edge product technology innovation, promote the progress of the underlying technology of the global blockchain industry, and bring the platform’s Global resources and historical experience are contributed to entrepreneurs. Based on this vision, the project will be judged from the following points: First, a comprehensive review of the basic information of the project, including the official website, white paper, investors, team members and other information. Focus on whether the team is stable, whether the team members have bad records, whether the founders have successful experience, clear the project vision and values, and be responsible for the long-term development of the project. For example, Gavin Wood, the founder of Polkadot, was previously the co-founder of Ethereum and made outstanding contributions to the advent of smart contracts. Polkadot’s development path and ecological vision are relatively clear, which is one of the reasons why Polkadot has been widely favored before.

Secondly, to pay attention to the code security of the project, it is best to have professional review records and authoritative audit reports, and have a mature vulnerability response mechanism, or compensation measures. Recently, on-chain attacks and Rug Pull incidents have been relatively intensive. The reason is that the project audit fails, or the code is not open enough, and there are hidden dangers in the control of key contracts.

Of course, the most important point is to understand the application scenarios and governance of the project: the project must conform to the development trend of the industry, and have enough innovative or targeted technological breakthroughs to meet certain rigid needs of users or solve industry problems and pain points, can effectively promote the development of the industry. At the same time, it must have a clear development route and planning, as well as a sound fund management system, reward and punishment mechanism, and a scientific economic model;


Previously, OKX Ventures released its annual investment report and announced the transcript for 2021: Committed to promoting the prosperity of the Crypto Ecosystem, aiming to help the development of high-quality projects, it has invested in over hundreds of projects, covering NFT, GameFi, DeFi , Layer2, Web3.0 and other core tracks, participated in the ecological construction of more than 90% of the head projects. After the beginning of the year, OKX invested in NFT platform LiveArtX, chain game Angelic, game and guild incubation platform, etc., focusing on the Metaverse and derivative tracks. Dora, founder of OKX Ventures, said: Gamefi is the inevitable result of the development of DeFi and NFT. Its value lies in enabling participants to enjoy the fun of games while also getting real benefits from them. The difference from traditional games is revolutionary. It is believed that high-quality projects with huge user scale and high game experience will be born on the track of Metaverse and GameFi, so we have invested in a number of teams with professional game development backgrounds. At the same time, it will maintain long-term attention and investment in the Metaverse and GameFi fields to better facilitate the vigorous development of this field.

In addition, Ouyi OKX Ventures staff stated that they will continue to pay attention to the value discovery of blockchain projects, support the most cutting-edge blockchain technology innovation, promote the healthy development of the global blockchain industry, and focus on structural value investment. The three major tracks are: infrastructure projects led by Layer 2 and high-performance public chains, transactions and financial projects such as DeFi derivatives, aggregation, and Staking, as well as Web3.0 applications such as Socialfi, Dao, and tool services. For example, SmartToken Labs is a potential project focusing on the construction of Web3.0, aiming to build an integrated network and market with better experience, and provide infrastructure services for participants’ development plans in the direction of Web3 and Metaverse.


For the entire encryption industry, 2022 is a year full of variables and complexities. Challenges and opportunities coexist. The key is: after last year’s vigorous development, whether the encryption ecology and the underlying infrastructure of the industry will be able to meet the interest rate hike by the Federal Reserve and the international situation. In a stable environment, provide sufficient value support for the industry. In the long run, the process of changing the world in the encryption industry is accelerating. Web3.0, Metaverse, infrastructure and other sectors each have their own exciting narrative lines, and everything has just begun.

Posted by:CoinYuppie,Reprinted with attribution to:
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