In the venture capital circle, there is one thing that people often mention: In 2000, Li Ka-shing’s son, Li Zezhen, invested 1.1 million US dollars, bought 20% of Tencent’s shares, and sold them in the next two years. With a profit of 11 million US dollars, Tencent’s market value has reached about 400 billion US dollars today. That is to say, if Li Zemin holds the shares of Tencent until today, then his $1.1 million will be The madness turned nearly 70,000 times and became $72.3 billion, but he cleared the position 10 times when he made a profit, thus missing one of the most well-known 10,000 times in history.
After the Internet was uploaded, many people commented: "You see, Li Zezhen's vision is no different. These traditional industry's self-restraint people refuse to learn new things, so they are destined to keep up with the times." But the facts are: As a company leader, Li Zemin did not have any better choices at the time. His company was in debt at the time because of the acquisition of Hong Kong Telecom. There was a huge loss in succession. If you don’t sell Tencent’s 20% stake, then the company will face Very serious situation, after all, the company has shareholders, you do not give people a statement, people will give you a statement. From this point of view, if those commentators are placed in the position of Li Zezhen, they will not do better.
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The story of Li Zezhen and Tencent actually shows a truth: that is, for the B-side institutions, their ability to withstand losses is limited, because the money they hold is not their own private money, but the shareholders’ money, and each At the time of the release of the financial report, you must give the shareholders a good answer. And this is why many institutions cannot hold blockchain assets such as Bitcoin for a long time: in the early days of digital currency development, the prices of various assets jumped up and down, and the market value instantly evaporated by 890% is commonplace, and It is very likely that I have been devastated for many years, and then suddenly turned 100 times in a morning. This kind of high degree of instability is unbearable to the institutions, or the shareholders behind them. We imagine that if a private equity fund does its best to buy a large number of blockchains in 2014, it is responsible for this. The head of the investment is estimated to have not yet reached the big bull market at the end of 2017, and it will be rushed out in the protests of shareholders.
Under such circumstances, we have seen such a scene: Anyone who can hold a digital currency for a long time is often a C-side individual, not a B-side institution. There is a saying in the currency circle called "free money holding", but for enterprises In a case, there is often no spare cash inside a company. If a business loses money and the liquidity of the company is in crisis, then other funds must come to the top. Otherwise, the business operation is likely to be unsustainable unless You are profitable every year, and cash is really too much to spend, otherwise you will want to take a sum of money and throw it in the currency circle, and the financial statements will probably be extremely ugly.
Since then, another problem has arisen: Since the general B-side investment institutions cannot hold digital assets for a long time, why do the current tokenfunds of the currency circle have long-term positions? The answer is simple, because these tokenfunds are not really cemeteries or private funds. Funds in the strict sense must not only have assets, but also funds, that is, through a certain channel to raise funds, and many founding teams of tokenfund Due to the lack of accumulation and precipitation of industry prestige, the credibility is insufficient, and there is no external fundraising. It is only playing with its own funds. In the traditional financial market, such a role is generally referred to as a “big family”, but considering the name of the “big family”, it sounds like a relatively large-scale industry, and it does not match the high-level industry in the frontier of the blockchain. The establishment of the Securities Fund does not require a license like the public fund of the French currency. Many large households have the title of “Digital Money Fund”, the founder of tokenfund. That is to say, many tokenfunds are simply draped in funds. The skin is the individual, so their behavior is different from the general fund, and they can hold the money for a long time without being responsible to the shareholders who do not exist.
However, we have to pay attention to one thing – that is, the amplitude of the digital money market is far less than a few years ago. In the past, the amplitude was as high as 20 or 30 percent. People’s eyes would not blink, but now There is a 10% stock level fluctuation, the industry has begun to yell, this phenomenon should be mainly attributed to two factors: First, many new practitioners have not experienced the period of large shocks in the previous market, Therefore, it will be rare to see more fluctuations in the A-shares. On the other hand, it is an indisputable fact that the overall amplitude of the digital money market is gradually narrowing. As a result, the possibility of future financial institutions entering the market will increase, and retail investors will be able to “hold the long-term”. It is also disappearing. (Deputy Sun)