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Cryptocurrency Exchange Operator Huobi Launches $100M Venture Unit for Bolt-on Deals and NFTs

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Cryptocurrency exchange operator Huobi Group has launched an investment arm with $100M to spend, setting aside some cash specifically for non-fungible tokens, the latest hot trend, the company said in a press release Thursday.

The recent surge in bitcoin and other cryptocurrencies prices has fuelled a global fundraising rush by companies in the sector. Both traditional venture capital firms and cryptocurrency incumbents are competing to snap up the best companies.  

The new unit is the newest progress by Huobi, the parent group of one of the world’s biggest exchanges. The company wants to diversify its operations away from trading after a separate unit, Huobi Tech (1611.HK), launched crypto-related funds for institutional investors last month.

The fund plans to acquire blockchain companies integrated into Huobi’s existing businesses, making early-stage venture capital investments. It includes $10 million specifically for investing in NFTs and marketplaces that trade them.

NFTs, virtual assets that exist on a blockchain ledger, have exploded in demand this year. This week, eBay said it would allow NFTs sale on its platform. 

“In the coming months, eBay will add new capabilities that bring blockchain-driven collectibles to our platform,” said Jordan Sweetnam, senior vice president, and general manager for eBay’s North America market.

The announcement came after eBay said last week it was open to the possibility of receiving cryptocurrency as a method of payment in the future and was studying steps to prepare NFTs on its platform.

“What we see in the market today is only a fraction of what’s actually possible with NFTs,” said Huobi Group CFO Lily Zhang, who will manage the new Huobi Ventures segment.

The fundraising growth is now beginning to spread to NFT groups. In a separate statement on Thursday, Hong Kong-based Animoca Brands, a gaming corporation providing NFTs associated with items inside its titles, said it had gathered $88.89 million at a estimate of $1 billion.

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