Huobi Launches Ivy Blocks for Blockchain
and Web3 Investment Projects
Leading cryptocurrency exchange, Huobi has
announced the creation of a new investment wing to manage decentralized finance
and Web3 projects. Ivy Blocks, will focus on funding projects in seed stages
and aiding them via financing and other support services, to make a "better, more inclusive" Web3 ecosystem.
Huobi Enters the Web3 Investing Segment with Ivy Blocks
Web3 has become a trending industry segment,
with lots of crypto exchanges, and VC firms
joining the bandwagon. Huobi, among the top ten cryptocurrency exchanges by
volume traded, has announced the launch of its own investment wing to
manage these new markets. Ivy Blocks will have the task of
identifying potentially successful Web3 and decentralized finance projects to
incubate and nurture in the future.
According to a PR statement issued by the
company, Ivy Blocks will have a multi-billion dollar war chest to achieve its
goal, something that makes it "well-placed to take advantage of the unique
opportunities in cryptocurrency markets globally." To support these projects
in their seed or growing stages, Ivy Blocks will launch three core services.
These services include an asset management
platform for decentralized finance (Defi) projects, an innovation-led
incubation division, and a more research-driven crypto platform. All of these
services will be available to the companies under the wing of Ivy Blocks.
Financing Power
Financing is a key part of the support that an
investment company offers its portfolio companies. Ivy Blocks’ operation is
simple and it seeks to offer this economic support to startups, which commonly
fail due to finance-related issues. On the relationship that the new company
will have with its portfolio of projects, Huobi CFO Lily Zhang stated:
“Many promising
projects tend to encounter liquidity constraints and a lack of go-to-market
support, which presents significant barriers to growth. Our focus on providing
such projects with liquidity investments and incubation services will no doubt
contribute towards creating a better, more inclusive Defi and Web3 blockchain
ecosystem.”
Ivy Blocks already has more than 1 billion
assets under management (AUM) from several companies incubated. One
of them is Capricorn Finance, an automated market maker (AMM) that is built on
top of the Cube blockchain.
Other exchanges have also invested in Web3 projects recently. Binance Labs, the investing wing of the exchange, reported that it launched a $500 million fund for Web3 projects on June 3.
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