Surprising Crypto Stat Shows Asian Investors are Big Blockchain Funders in America
Chinese Investors Lead In Crypto Venture Funding In America
Regularly, Chinese investment funds in the Silicon Valley are overlooked by many due to their lesser publicity, lower investment frequencies and relatively small asset portfolios. Moreover, the lack of trust in such institutions means that they often lose out to more established names in the advanced stages of investments. Nevertheless, the situation in the crypto space is entirely different.
The sector, which has been neglected by mainstream investment funds, has opened another avenue for Chines companies. As per the Wall Street Journal, the Chinese Investors contribute to a whopping 40% venture financing of crypto startups, with the USA included.
Despite the ban imposed by the Chinese government on digital currencies trading, its citizens are a dominant force in the cloud mining industry, owning a vast 80% of the global mining pool. Also, these individuals are the majority shareholders in mining hardware manufacturing companies. Moreover, three of the top five digital currency trading platforms in the world (Binance, OKEx and Huobi) are owned by Chinese investors, although they are licensed to operate in Hong Kong.
China’s Interest In Blockchain Technology
As of now, it highly unlikely that China will withdraw its ban on cryptocurrencies, citing money laundering , tax evasion and other economics risks as the reasons behind the embargo. However, the country’s president, Xi Jinping, has been previously quoted lauding blockchain technology as a breakthrough, and listed it alongside other technological discoveries in China’s five-year strategic plan.
For this reason, Chinese investors are privy to proprietary info and bureaucratic partnerships concerning distributed ledger technology, including its development in the US. In this regard, Eric Lyn, a cofounder of LinkedIn, stated that the crypto space should not overlook China and Asia as a whole, mainly because of the interest the region has in cryptocurrencies and blockchain technology.
Alliance Between The East And The West
Since it is an inclusive technology, blockchain and cryptocurrency startups are impelled to seek capital form both local and international investors to achieve success. Because of this, American digital currency companies are actively engaging Asian and Chinese investors to gain knowledge, establish connections and have an extensive understanding of the underlying regional markets.
Additionally, such investors obviously have a better knowledge of regional laws and regulations regarding virtual currencies and blockchain, and how to bypass any legal obstacles.as a result, leading cryptocurrencies companies across the world have identified China and other Asian countries as the forefront of crypto investments worldwide.