Blockchain investments must focus more on the protocol and the fundamental infrastructure, the founder of a famous venture capital based in China says.
"At the moment there are so many blockchain investments," says Node Capital's founder and CEO, Jun Du, in an interview with ZDNet. "There is a lack of logic behind these investments.
" This would not happen in a mature market. So at Node Capital, we focus on projects that are developing a protocol or a fundamental infrastructure. This area has not developed completely and there are many potential opportunities, "he said.
Blockchain continues to be the hottest trend in Asia, especially in China – the global leader in terms of patenting for blockchain – where c & # 39 is Industrial Debate on what the next big coin is after bitcoin and ethereum The city of Nanjing announced last month a $ 1.5 billion fund that will invest in public chain projects in an attempt to marry the blockchain with traditional industries.
"The protocol is something even more fundamental than the public chain," said the founder, former CEO of cryptocurrency trading Huobi, which boasts a trading volume of over $ 1 billion.
"For now, exchanges are seeing the greatest profits. And they have a great voice in the industry, as a result. But the industry must focus more on technology companies. Portfolios and technology development have enormous potential and a long road map.
"Another focus on investment is application, and when applied to that particular sector, Blockchain must bring about real changes, including copyright and decentralized finance," he added.
Node Capital is also making its way into the United States. In July, at an event in Silicon Valley, the company announced that it will invest 200,000 ETHs in promising blockchain projects.
"In Asia there are big ideas for blockchain applications, but in terms of technology it is lacking," Du said. "We believe that expansion in the United States will solve this problem."
Node Capital has invested in over 160 projects globally, including the cryptocurrency portfolio company Coldlar and Zipper, which develops the mobile operating system for decentralized apps. So far, he has invested in over five projects worth over $ 100 million based in the United States.
South Korea is in third place compared to the United States and Japan in terms of the volume of the cryptocurrency trade. Due to the disproportionately high volume of trade compared to its population, the prices of currencies established in the country have been dubbed "Kimchi Premium".
"South Korea has many coins customers, but as an investor, I want to find other blockchain developers," Du added.
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