After launching its $25 million investment fund, OP Crypto Capital Management Ltd. To play a more active role in the lifecycle of blockchain startups ranging from games to Web 3.0. David Gann, the former CEO-turned-founder of Huobi, spoke with Cointelegraph about the transition from his previous company, the growth potential of crypto outlets and the role his fund will play in paving the way for the next generation of crypto startups.
Smooth transition
He said that after more than three years at Huobi Ventures and Huobi Labs, Gan transitioned into his new role seamlessly. One of the primary motivations for creating the new fund was to increase flexibility and independence in investment decisions. “At my previous company, when we grew to 2,000 employees, it was difficult and challenging to move quickly, given the rapid pace of innovation in the crypto industry,” he explained.
He added that the secular Bitcoin (BTC) bull market and widespread institutional adoption of digital assets made now the perfect time to decouple a new investment fund.
Increased startup support
Venture capital funds have poured billions into crypto and blockchain startups this year alone, underscoring the belief that digital assets are poised to disrupt the global economy in profound ways. The Gan Fund tries to differentiate itself from other VCs by providing operational support before and after the deal. To aid in the process, OP Crypto Capital has hired marketing and operations specialists who were previously on Huobi, Binance, OKEx and other exchanges. Projects funded through OP Capital can also gain additional avenues of liquidity through coin offerings, smart contract audits, and institutional accreditation.
Related: 62% of Institutions Begin Investing in Cryptocurrency Within a Year: Survey
Show the true value 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 how web-based data is stored, processed and managed. He described the emergence of a “global state layer” for data management, which allows value to be settled directly on the Internet. He further explained:
“It allows us to send files in a copy-protected manner, enabling true peer-to-peer transactions without intermediaries. Essentially, Web 3 provides people with a new way to use the Internet without giving up their privacy and valuable information.”
While the company has not disclosed which projects it seeks to fund, the emergence of the interconnected world of Web 3 is at the heart of its investment decisions. This includes financing projects that bridge the gap between centralized financing, DeFi and the so-called Metaverse.
Related: DeFi and Web 3.0: Unleashing the Creative Juices with Decentralized Finance
Scaling the crypto games economy
One of Jan’s most daring predictions is that games will be the first to bring 100 million users to the crypto market. The intersection of gaming and cryptocurrency has gained momentum, even in the traditional worlds, thanks to the growth of non-fungible tokens, which have paved the way for true ownership of digital items that are increasingly being used across gaming platforms.
“We believe virtual communities, particularly gaming communities, will become ubiquitous, and we are committed to promoting a healthy sense of community, place and purpose as a means of empowerment rather than mere escape,” Gann said, noting that nearly one-third of the world’s population can be categorized as more or less gamers. with another.
He further explained that 41.9 million gamers own cryptocurrency, and 38% of them are millennials between the ages of 21 and 38, according to research from Newswagg. He completed:
“Millennial gamers own 55% of all crypto assets, compared to just 5% of all millennials, which shows that gamers are more likely to hold cryptocurrency than the average person. 80% of gamers who own crypto are also interested in using cryptocurrency. Cryptocurrency to buy games and in-game items.”
VC look forward
The growth of crypto-focused venture capital indicates that investors are looking into blockchain technology and digital assets beyond their direct impact on the price of Bitcoin, Ether (ETH) and other altcoins. Funding has not been affected by the market crash that began in the spring of 2021. As Cointelegraph continues to report, crypto exchanges and blockchain infrastructure providers have generated massive interest in venture capital in recent months.
