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- 1 A Hong-Kong based company collaborated with a blockchain-focused investment firm.
- 2 Funds to focus on the burgeoning asset class and blockchain technologies.
Hong Kong’s effort to open its arm to welcome crypto innovations is getting positive responses from the wider crypto community. Recently a Hong-Kong based company reportedly collaborated with a blockchain-focused investment firm to bring two investment funds. The funds will be focusing on the burgeoning asset class and blockchain technologies.
Twitter handle Wu Blockchain posted the news of the Hong Kong branch of China Pacific Insurance Company (CPIC) and Waterdrip Capital together launching a venture capital fund. The social media handle is managed by crypto journalist and blogger Colin Wu.
The two said funds are: Pacific Waterdrip Digital Asset Fund I and Pacific Waterdrip Digital Asset Fund II. However, both resemble each other but will have different focus areas. The first fund will concentrate on new projects in blockchain infrastructure sectors in the early stages. Also, this fund focused on decentralized finance, non-fungible tokens, Web3 and metaverse-like crypto innovations.
The 2017-founded international investment institution, Waterdrip, focuses on companies and projects around blockchain and crypto startups. Its website suggests that the firm has invested in many popular crypto projects, including Cosmos, Filecoin, The Graph, and many more.
While the second fund, also referred to as ‘POS Token Income Enhancement Fund,’ will focus on proof-of-stakes (POS) consensus mechanism blockchain-based cryptocurrencies.
The growing interest in crypto companies in Hong Kong came after the country’s efforts to boost the crypto industry in the region. This decision starkly contrasted with the government’s stance in mainland China.
China had outright banned cryptocurrencies and every other crypto-related operation in the region. This included crypto payments to run crypto exchange to crypto mining operations. Until the crackdown, the country was leading in crypto adoption and operations. It was on top, for instance, in terms of computing power needed for crypto mining or hash rate. The ban on crypto in 2021 came as a heavy blow to the broader crypto industry.
However, the Chinese state-owned banks supported Hong Kong’s opening to crypto. These banks are also offering their services to companies in the region.
The initiative from CPIC and Waterdrip will focus on facilitating more diversified and innovative options for investors to make investments. The proposed funds will be serving big corporations, high-income individuals and family offices like institutional investors.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
