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What are the cryptocurrencies invest: interviews with the head of Kucoin Ventures
Cryptocurrency exchanges earn not only at trading commissions, leaflets of tokens and financial products. Large players create venture units for investment in startups in the early stages.
Forklog talked with the head of Kucoin Ventures Justin Chow. He explained how the fund selects projects for the portfolio, why billionaires save problem companies and when the bear market goes to the bull.
FORKLOG: Hello! Tell us a little about yourself. How did you come to the crypto industry?
Justin: I received an MBA in London and Chinese-European business schools, and then worked as a executive director in large public companies. They were closely connected with Fintech: thanks to this, I met a cryptocurrency and began to be interested in her.
During the study of the crypto industry, I learned about Kucoin – the exchange with high potential and stable growth indicators. In November 2021, she opened the Kucoin Ventures Foundation, and I went there to the post of investment director.
FORKLOG: You invest yourself? What tokens are in your portfolio?
Justin: Investing is my passion. Given the current market, I hold Bitcoin, Ethereum and several more native tokens.
FORKLOG: What role of cryptocurrencies play in your life? You are discussing trends and investments with friends?
Justin: Not always. Most of my friends from Singapore, India and the USA often talk about cryptocurrencies, but Australia friends are not interested in blockchain.
I am interested in combinations of goods and NFT, especially the things of premium brands. I also like Fiat-on-Ramp projects-applications for quick and convenient purchase of cryptocurrencies.
They associate blockchain-industry with ordinary life. I believe that thanks to such decisions in the near future, the very massive accepting of cryptocurrencies will come.
FORKLOG: You previously worked in traditional venture funds. Is there a https://gagarin.news/news/a-school-in-the-uae-offers-to-pay-for-education-with-cryptocurrency/ difference between investments in ordinary companies and cryptocurrency projects?
Justin: The financial cycles of the crypto are developing faster. New information greatly affects prices, so Kucoin Ventures carefully monitors the mood of other traders and investors.
The key to successful investments in any market – research research. I believe that the creation of the cost underlines all investment processes.
FORKLOG: Why Kucoin decided to create a separate investment fund?
Justin: The leadership of the exchange wanted to create a separate unit that would constantly monitor the market in search of new projects, so as not to miss the opportunities for investment in the early stages.
In addition, Kucoin Ventures is responsible for Kucoin Group strategic investments. A separate team will best cope with this task.
FORKLOG: Why do exchanges prefer venture investments instead of ICO?
Justin: With venture investment, we conduct a legal audit of the entire startup team, we can better understand technology and business models. This information allows us to earn more than on tokens.
Forklog: Kucoin Ventures competes with other funds?
Justin: No, we are more partners than rivals. We even regularly share transactions.
FORKLOG: And how is the choice of investment projects?
Justin: Kucoin Ventures has developed tables for quick scoring startups. We also hold reserves for investment in projects that offer new technologies and options for using blockchain.
We also evaluate the personal qualities of team members. The best projects are made by friendly teams and executive entrepreneurs.
FORKLOG: from a technical point of view, which projects are the most promising?
Justin: We highly evaluate the appchans-blockchain protocols, which are designed for one specific application or ecosystem. Kucoin Ventures also invests in infrastructure, GameFi, NFT and other Web3 projects.
From a technical point of view, the most promising projects are ZK-Rollups, solutions to the second and third levels.
Web3 attracts to the world of cryptocurrencies of new users, decentralized projects have a space for growth. Web2-Business is constantly faced with monopolies.
FORKLOG: What projects are now in the Kucoin Ventures portfolio?
Justin: We have more than 60 positions: a dozen games like Dogami and Heroes Chained, Socialfi Content tokenization, several blockchain protocols, Defi projects with strong teams. The list can be viewed on the Kucoin Ventures page.
FORKLOG: You continue to invest in the bear market?
Justin: Yes, however, we began to more strictly check the projects in which we plan to invest money. Appchans and infrastructure solutions deserve more support in the bear market.
I note that Kucoin Ventures highly appreciates innovative projects. We are ready to invest in them on any market cycle, although now there are not so many such products.
FORKLOG: Many companies had to reduce staff. Kucoin also affected this?
Justin: We did not fire anyone, since good specialists are most important now. In the first half of 2022, we hired 300 people to the development, marketing and business development departments.
FORKLOG: Some crypto -millionaires announced that they would help affected companies. What do you think of it?
Justin: They expand their influence in the market, and this is much more valuable than money. The current market is what it is. We do not plan to save anyone, but if we see underestimated assets, we can invest in them.
FORKLOG: Analysts sometimes compare the current bearish market with 1907 banking panic. You agree with this comparison?
Justin: We believe that the markets are developing cyclically, from crisis to rise and again to crisis. So it was in 1907 and in 2008. Technological innovations will help the market again enter the bull phase, if not this year, then in the next.
FORKLOG: What can you advise novice investors?
Justin: Explore projects, check the commands, update the list of potential investments and think well before clicking on the button.
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