Since launching a $ 25 million venture fund, OP Crypto Capital Management Ltd. aims to play a more active role in the life cycle of blockchain startups, from gaming to web 3.0. Former Huobi CEO David Gan spoke to Cointelegraph about his transition from his former company, the growth potential of crypto niches, and the role his fund will play in the future.
After more than three years at Huobi Ventures and Huobi Labs, Gan has seamlessly transitioned into his new role, he said. One of the main drivers of new funds is more flexibility and autonomy in investment decisions. “In my old company, when we grew to 2,000 employees, it was more difficult and challenging to act quickly given the rapid pace of innovation in the crypto industry,” he said.
A secular bull market for Bitcoin (BTC) and widespread institutional adoption of the digital asset, he added, would have made it an ideal time to create a new hedge fund.
Improved boot support
Venture capital funds have poured billions of dollars into crypto and blockchain startups this year alone, underscoring the belief that digital assets are poised to profoundly disrupt the global economy. Gan’s Fund aims to differentiate itself from other VCs by providing pre- and post-trade operational support. To support this process, OP Crypto Capital has recruited former operations and marketing specialists from Huobi, Binance, OKEx and other exchanges. Projects financed by OP Capital can also receive additional liquidity channels through coin offers, intelligent contract reviews and institutional takeovers.
Related: 62% of institutes start investing in crypto within a year: survey
The Real Value Proposition of Web 3
When asked about the value proposition of Web 3 – a broad concept that describes the third generation of internet services – Gan said that blockchain technology is revolutionizing the way web-based data is stored, processed and managed. It describes the creation of a “Common State Layer” for data management, which enables direct valuation on the Internet. He further stated:
“It enables us to send files copy-protected, which enables real peer-to-peer transactions without intermediaries. In essence, Web 3 offers a new way for individuals to use the Internet without giving up their privacy and valuable information. ”
Although the company does not disclose the projects it plans to finance, the emergence of a connected Web 3 world is central to its investment decisions. This includes funding projects that close the gap between centralized finance, DeFi and the so-called Metaverse.
Related: DeFi and Web 3.0: Unleash the creative juices with decentralized financing
Scale the crypto gaming economy
One of Gans’ boldest predictions is that gaming will be the first game to bring 100 million users to the crypto market. The crossover between gaming and cryptocurrency is gaining momentum even in the traditional world, thanks to the development of non-fungible tokens that have paved the way for real ownership for digital items that are increasingly used on gaming platforms.
“We believe that virtual communities, especially gaming communities, will be ubiquitous, and we are committed to fostering a sense of community, place and sane purpose to make this easier, not just an escape,” Gan said, noting that roughly a third of the world’s population could be classified as a gambler in one way or another.
He went on to explain that 41.9 million players own crypto and 38% of them are millennials between the ages of 21 and 38, according to research by Newswagg. He continued:
“Millennial gamers own 55% of all crypto assets, compared to just 5% of all millennials, which suggests that gamers are much more likely than the average to own crypto assets. 80% of players who own crypto are also interested in using crypto to buy games and in-game items. “
VCs look ahead
The growth of crypto-focused venture capital shows that investors are looking at blockchain technology and digital assets beyond their direct impact on the price of Bitcoin, Ether (ETH) and other cryptocurrencies. The financing will not be affected by the market crash from spring 2021. As Cointelegraph further reports, crypto exchanges and blockchain infrastructure providers have generated significant interest in VC in recent months.