After the biggest VC boom in crypto history last year, venture capital funding in the industry fell by 38% between April and May of this year, according to Dove Metrics.
This came on the heels of the Terra-induced crypto crash that sent the industry into a bear market. But while this crypto crash has seen prices fall as hard as any other crash, things are different this time. It seems that no serious observer is under any illusion that crypto or DeFi is going away anytime soon.
Digital Finance Group (DFG), a global blockchain and cryptocurrency investment firm, recognizes that, and is actively working to prepare blockchain and Web 3.0 startups for the next bull cycle. Founded by CEO James Wo, DFG manages more than $1 billion in assets, with a particular emphasis on the Polkadot ecosystem such as Astar, Acala,, Efinity, Moonbeam, Unique and. The firm has grown to become among the largest holders of Bitcoin, Avalanche, Polkadot and Near tokens in Asia.
Out of the many POS networks, Wo sees Polkadot as fair, secure and resilient. Polkadot’s heterogeneous multi-chain network enables developers to create new projects more easily and affordably, and with its cross-chain interoperability, Polkadot can communicate with external networks such as Bitcoin and Ethereum.
Beyond just focusing on Polkadot as a POS ecosystem, it’s a testament to the stakes that DFG is placing as the future of blockchain. Another POS network the fund has its eye on is Cosmos, the energy-efficient blockchain that enables blockchains to transfer value with each other through IBCs and Peg-Zones while retaining their sovereignty.
DFG maintains a diverse range of investments
More than just establishing Venture Equity Fund to invest in CeFi service providers, DFG has established Crypto Fund and Polkadot Ecosystem Fund. The idea is to support projects that are innovative enough to flourish with sufficient funding. For now, the fund has its eye on investing in up-and-coming infrastructure providers, such as ChainSafe and CypherMod.
Although crypto startups are some of the riskiest projects to invest in, they can also reap the highest rewards. Bitcoin plummeted to a value of one penny right after reaching $1.00 a few days earlier in 2011, losing 99% of its value in a few days. Nevertheless, Bitcoin’s price rose again to $29.60 within three months, an increase of 2960%. Through the bear and bull cycles of the market, Bitcoin peaked at $67,566.83 in November 2021. Ethereum’s success has also fluctuated over the years. Nevertheless, with the help of venture capital investments including DFGs, Ethereum currently has over 90% of the NFT market, and its original token remains the most well-known altcoin.
Optimism in the crypto space remains
Regardless of crypto’s exciting rises, crashes are always present and industry volatility remains strong. In the final months of 2022, Bitcoin and Ethereum have both fallen more than 50% from their all-time highs in 2021. Still, despite tough market conditions, investor interest in crypto persists.
DFG is optimistic about the mainstream potential of the crypto market. In the Asian region in particular, the fund hopes that local governments will soon gain a deeper understanding of the blockchain industry so that VCs’ mainstream acceptance of the crypto market becomes possible. The bear market will not last forever, and DFG is building the foundations for a successful bull run in the months or years to come.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial or other advice.