Wednesday, October 5, 2022

Top crypto exchange Huobi Global launches $1B investment arm

Crypto exchange Huobi Global has launched an investment arm it calls “Ivy Blocks.” With a whopping $1 billion worth of crypto assets under management (AUM), the firm will focus on investing in decentralized finance (DeFi) and Web3 projects. This lends further proof to the fact that venture capital (VC) firms are still not backing down from investing in Web3.0 and blockchain technology. That is of course, despite an ongoing bear market that naturally should be discouraging.

Huobi Global to help promising blockchain startups

According to a spokesperson at Huobi, the majority of the funds have been set aside for “identifying and investing in promising blockchain projects.” And in line with that, Ivy Blocks has already announced the first beneficiary of its investment fund, Capricorn Finance.

Meanwhile, it might be important to state that the firm’s focus on DeFi is coming at a seemingly awkward time. Presently, the DeFi sector’s total value locked (TVL) is down 58% from its peak. Recall that last December, DeFi TVL surpassed $316 billion but has now fallen a little below $133 billion, per industry data.

Interestingly though, the plight of DeFi is not an isolated one. In fact, it is a reflection of the so-called crypto winter that has ravaged the entire market since early 2022. And as most crypto enthusiasts tend to believe, bear runs such as this, are good for market cleansing.  

Venture capitalists remain unbothered

Quite against all odds and the reality of the current market situation, venture capital has continued flooding the crypto industry. This is even as investors continue to place Web3 and metaverse projects on the top of their priority list. 

To clear all doubts about the statement above, reports claim that $14.6 billion worth of capital investment was injected into blockchain and crypto projects in Q1 2022.  That’s nearly half of the total amount of venture capital investment that the sector saw for the whole of 2021. Recall, the DeFi sector saw a total of $33 billion investment fund last year, according to Galaxy Digital Research.

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