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The move by the Crypto.com exchange to unveil its Venture arm is not uncommon in the digital currency ecosystem. Some other exchanges have similar initiatives.
Hong Kong-based cryptocurrency exchange Crypto.com has unveiled its Venture Capital arm dubbed Crypto.com Capital. The new entity has the mandate to identify and fund innovative projects within the digital currency ecosystem, in a bid to nurture them to attain global acceptance.
As blockchain technology and cryptocurrencies as a whole journey’s unto maturity, new projects are permeating the space, with some ambitious enough to aim at global adoption. As prevalent in the tech ecosystem, however, the unavailability of funds is always a hindrance to the aspirations of most crypto-related startups, and this challenge is what Crypto.com Capital was set up to solve.
The exchange is committing an initial fund to the tune of $200 million to the Venture arm. The outfit will operate with the motto and operating principle of “Founders First,” in a bid to prioritize the interest of the project incubators, who most times struggle to bring their innovative ideas to life.
Besides the fund that is set to be committed to startups, Crypto.com Capital will offer a priority launch on the mother exchange, further accelerating the acceptance of the projects on the global stage. According to the outfit, it is mandated to “pursue long term partnerships with entrepreneurs in every sector of the cryptocurrency industry.”
Per the financial commitment, the outfit noted that “Crypto.com Capital will lead seed rounds with cheque sizes between $100k and $3m and Series A rounds from $3m to $10m.” The new venture arm will be lead by Bobby Bao, Crypto.com co-founder and current Head of Corporate Development.
Crypto.com Venture Arm Initiative Is Not Unusual among Exchanges
The move by the Crypto.com exchange to unveil its Venture arm is not uncommon in the digital currency ecosystem. Other exchanges have similar initiatives allowing them to commit funds to novel projects in the space.
Binance and its Chief Executive Officer Changpeng Zhao are at the forefront of backing innovations in the space, marked by early investment in the Terra Stablecoin as reported by Coinspeaker.
Quantitative trading platform Alameda Research, which shares a close association with FTX Derivatives exchange is also known to be a strong backer of blockchain startups. The outfit recently invested $40 million in Oxygen, a Robinhood-like trading startup. The company has also provided funding for other projects including but not limited to APY.Finance.
The initiative from Crypto.com as well as other exchanges and equity investors in the cryptocurrency ecosystem will help champion the speedy growth of the startups in the coming years.