Babbitt site | Policies are hot, Tokenfund is cold, where are the investment opportunities for blockchain in 2020?

Babbitt News, on December 3, "2019 CAN Conference · Interconnection of Everything, Blockchain and New Global Economic Structure" was held in Hangzhou.

In the roundtable forum in the afternoon, Zhou Shuoji , founder of FBG Capital , Yi Lihua , founder of De Capital, Li Zongcheng , founder of Time Stamp Capital , Sun Ming , Partner and General Counsel of Distributed Capital, and General Manager of Huobi LABS Five industry leaders had a wonderful discussion on the topic of "blockchain investment". The roundtable was hosted by Shang Silin, co-founder of Mars Finance .

This is a serious round table forum. In the context of the sluggish digital currency market and strict supervision, it may be an untimely thing to discuss blockchain investment. Therefore, at the event, except for the occasional joke of Yi Lihua, other guests were basically looking dignified. Nonetheless, the round table still has many refreshing views.

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The following is a selection of round tables, organized and published by Babbitt.

Shang Silin: In the more than a month after the "10.24 Speech", has the investment direction changed?

Zhou Shuoji : First, we are in the learning stage, just like the STO that started last year, it also took a lot of time to learn. The market is changing too fast. Frankly speaking, we don't have much experience in this field. It's too early to talk about the layout. We will observe for a while. Second, we focus on blockchain traffic and investments in transaction-related directions. In addition, we made more than 20 investments worldwide this year, half of which were equity investments. There is no idea of ​​investing in alliance chain technology companies for the time being, and it is still in the observation stage.

Yi Lihua : In the past three years, I have invested in more than 20 enterprises, including Jia Nan Yunzhi. We will make great efforts to make equity investments related to the application and landing of blockchain technology.

Li Zongcheng : After the General Secretary's speech, it did not have much impact on our own development, but just strengthened our line. In terms of investment, we still pay attention to the public chain, where there is a vast market space. In terms of project advancement, we are doing blockchain technology development and helping companies or governments build the underlying blockchain platform.

Sun Ming : It has a great impact on the domestic market. As for the specific impact, it takes half a year to observe. The most obvious influence now is to be a company of alliance chain. I personally think that for VC, alliance chain is not a good investment track. The alliance chain itself is valuable, but this does not mean that the developers of the alliance chain can enjoy the same proportion of benefits. Because the biggest beneficiaries of the alliance chain are member units on the alliance, and the developers of the alliance chain cannot get much value. But for some large companies, as an internal layout of the track, this is likely to benefit.

After the general secretary's speech, there was no direct impact on overseas markets, because more than two-thirds of distributed capital were overseas projects. An interesting phenomenon is that some overseas investors or project founders, after hearing the news from China, became interested in the Chinese market. They will observe what famous projects are in China. They will also recruit community leaders or Chinese in China. District business leader, while actively building a local community in China.

Yang Jinyan : The next day after the general secretary's speech, we immediately revised the original entrepreneurial camp and expanded it to whether it is an overseas project or the domestic blockchain industry, which is open to all entrepreneurs. We support not only digital assets, alliance chains, but also the application of blockchain technology.

Shang Silin: What is the reason for the significant decline in the activity of Tokenfund (digital currency investment fund) in 2019? In the past few years, what is the role of Tokenfund in the blockchain industry?

Zhou Shuoji : In 2017, the injection of assets in the digital currency market grew rapidly. Many of them were capital-assisted. The exchange was the biggest beneficiary. Tokenfund participated in the manufacturing process of the early market bubble. Like the early stock market, many institutions entered the market when the Tokenfund came up, and many institutions disappeared when it collapsed. This is a normal phenomenon. Blockchain investment is different from traditional VC investment. Maybe everyone is more concerned about cash flow that can be realized, belief in native assets, and hope to expand the audience body of native assets, and see more application scenarios on this basis, and It is not like the traditional investment side that catches traffic for applications. Excellent Tokenfund will exist for a long time, and those who do not adapt to the market will be eliminated.

Yilihua: Tokenfund was the currency standard in 2017, but then the price of Ethereum dropped too much, and the market will eliminate some Tokenfund, but there are still excellent Tokenfunds. In the future, Tokenfund will become more professional and have better service capabilities. In the bubble period, you don't need to pay attention to so many details, but after the bubble burst, you need to recruit, invest, manage, and retire 4 teams with strong professional capabilities.

Li Zongcheng: As the market cycle changes, the degree of attention of Tokenfund also changes. Tokenfund is helpful to the project party, but not so much. The development of the project depends on the project team's own. Tokenfund needs to have its own understanding of market cycle changes in order to survive.

Sun Ming : I don't like the word Tokenfund. I prefer specific organizations in the traditional financial industry, such as commercial banks, investment banks or securities firms. Their business types and legal supervision directions are clear. At present, Tokenfund does a lot of things, such as doing FA business, market maker business, and private equity fund business. Now in China, due to poor market conditions, some Tokenfunds have withdrawn from the primary market, but they have not disappeared. Instead, they are transforming into other businesses, and more are doing secondary markets. The wave of temporary Tokenfunds established in 2017, whether it is raising money or using their own money, if they only make simple investments in the primary market, they will basically be eliminated now, and it will be difficult to return to the future. Even if the bull market comes, I think the crazy situation like the ICO in 2017 should not repeat itself. The market is changing very quickly, and your own ability must keep pace with the times.

Yang Jinyan : I think the investment logic of Tokenfund is essentially the same as traditional investment. What I pay more attention to is the legal status of Tokenfund on a global scale and the governance rules for its standardized operation. At present, there are no relevant rules and systems. Therefore, Tokenfund not only bears market risks in terms of funds, but also bears legal risks of compliance.

Shang Silin: What is the next investment direction?

Zhou Shuoji : First, the platform related to traffic. Traffic is how to let more new users enter the field of digital assets, hoping to realize cash directly, but we are not particularly interested in intermediate links such as media. The second is related to transactions. I think Korea and the United States are two special two markets.

Yi Lihua : Now I mainly focus on the application and implementation of blockchain technology. Because I used to do equity investment and was interested in it, and the returns are very good, we will continue to set up funds to invest. Overseas, there are two main directions of investment, one is an overseas trading platform, and the other is an overseas secondary market.

Li Zongcheng : We mainly focus on three directions. The first is the iterative upgrade of existing projects. Assets such as Bitcoin, which have wide recognition, have the characteristics of natural periodic fluctuations. The second is technology-oriented new projects, such as Ethereum, to solve their own efficiency problems through technological innovation. The third is based on the application of these new or old projects, such as MakerDAO's DAI from 10 to 20 million at the beginning of the year to 100 million now. Data growth has proven its value.

Sun Ming : Now the focus is on the implementation of the industry's infrastructure and commercial applications. If the blockchain industry will exist for a long time, then security, custody, capital, computing, storage and other infrastructure will be required. Digital asset trading is also an infrastructure. But not necessarily in the form of an exchange. From the perspective of the C side, a basic wallet is required. Most wallets are not friendly enough for ordinary people. In terms of landing commercial applications, it is mainly to B's services. These services may not be able to make money, but if it can provide commercial services to traditional enterprises based on the blockchain and add value to the services, then service providers can work with corporate customers. Growing together, such services have investment value.

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