SINGAPORE, Aug. 7, 2024
/PRNewswire/ --
Foreword
The first half of 2024 has marked a period of significant growth
and innovation in the cryptocurrency market. This
report outlines HTX Ventures' key investment directions and maps
out the investment outlook for the latter half of 2024.
"HTX Ventures had a great first-half of 2024, following our
objective of advancing blockchain technology and Web3 ecosystems,
it was through active searching and curation that we found
potential opportunities to invest in. These projects have been
shortlisted as we believe that they offer innovations and
infrastructure that will be essential to the development of Web3.
"Edward, the Managing Partner at HTX Ventures said. "For the rest
of 2024, we remain optimistic despite the market slowdown, and will
continue our lookout for more great projects to invest in by
staying committed to the long-term game and supporting front-end
development. We have observed a positive innovation flywheel.
Triggered by one successful business model and ecosystem, it will
inspire many entrepreneurs and lead to long-term innovations within
the ecosystem."
Market Context
Macro Market
The cryptocurrency market has experienced
significant growth during the first half of 2024. The approval of
Bitcoin ETFs has opened the door to traditional
finance for cryptocurrencies, injecting substantial
liquidity and stabilizing Bitcoin prices between
$60,000 and $70,000 from an average of $40,000. Additionally, the approval of
ETH ETFs by the U.S. Securities and Exchange
Commission has ushered cryptocurrencies into the ETF
era, greatly lowering the investment threshold, though it may also
bring more regulation and artificial volatility. As a major class
of risky assets, cryptocurrency ETF price fluctuations
will have a stronger positive correlation with other financial
markets (such as stocks and bonds). It could cause
crypto to be more easily manipulated by Wall
Street.
The Federal Reserve's interest rate policies also have a
significant impact on the cryptocurrency market. The
Federal Reserve's interest rates directly affect the liquidity of
the U.S. dollar and related pegged currencies, which in turn
directly influence the volatility of Bitcoin and other
major cryptocurrencies.
Comment on the August 5th
Global Market Selloff
Triggered by Japan's interest
rate hike, poor U.S. corporate earnings, and unfavorable U.S.
unemployment data, the market experienced excessive pessimism and a
global selloff (exiting risk assets and moving into safe-haven
assets) on August 5th. However, the
U.S. economy has not actually entered a recession. More economic
data, such as July and August's CPI and PCE data, ISM manufacturing
and non-manufacturing indexes, and PMI data, is needed to clarify
the economic situation. Currently, the market's rate cut
expectation is overly optimistic, with the market pricing in a
total rate cut of about 100 basis points before the end of the
year. The Federal Reserve needs more evidence to make a drastic
monetary policy decision. Additionally, market uncertainty has
increased due to the U.S. election.
Based on the above assessments, we believe that at least until
September, crypto investors should not be overly
pessimistic and blindly cut positions, nor should they chase highs.
It is a good time to tap into cheap but high-quality business
models. Position sizes should be moderate, leverage should be
avoided, and investors should continuously update their
understanding as new economic data is released to gain greater
certainty.
Project Building
On the business side, the Ethereum Dencun upgrade
in early 2024 enhanced the ETH ecosystem, improved
Layer 2 usability and competitiveness, and opened up new
opportunities for project chains. EigenLayer's innovative business
model has introduced new use cases and revenue streams for secured
network coins like Ethereum, prompting exploration of
new applications for Bitcoin. The combination of AI
Agents with blockchain is also bringing transparency and automatic
execution for service requesters, providing a glimpse into the
future of AI integration.
HTX Ventures' Investment Focus in First Half of 2024:
During this market cycle, HTX Ventures has been actively
identifying and supporting innovative technologies and new business
models. Committed to advancing blockchain technology, HTX Ventures
offers comprehensive support to projects that expand the scope of
Web3.
In the first half of 2024, HTX Ventures made 23 strategic
investments across a wide range of areas, including infrastructure,
DeFi, the Bitcoin ecosystem, AI, DePIN,
SocialFi, and more, with a strong focus on foundational
infrastructure and base layer models. Impressed by the increasing
talent in the Web3 builder community, particularly as experienced
Web3 developers collaborate with Web2 professionals to address real
user needs, HTX Ventures is excited to partner with passionate
teams to build a more user-friendly Web3 ecosystem.
There are six main tracks that we look into and believe will
continue to be rewarding and flourishing during the latter half of
2024. These include BTCFi, Multichain Future Infrastructure, and
User Experience Enhancement, Application Infrastructure Projects,
New SocialFi and Community Applications, and DePIN.
Read the full report here:
https://htxventures.medium.com/htx-ventures-releases-2024-half-year-investment-report-highlighting-six-key-investment-directions-aa2e77b0a034
About HTX Ventures
HTX Ventures, the global investment division of HTX, integrates
investment, incubation, and research to identify the best and
brightest teams worldwide. With more than decade-long history as an
industry pioneer, HTX Ventures excels at identifying cutting-edge
technologies and emerging business models within the sector. To
foster growth within the blockchain ecosystem, we provide
comprehensive support to projects, including financing, resources,
and strategic advice.
HTX Ventures currently backs over 300 projects spanning multiple
blockchain sectors, with select high-quality initiatives already
trading on the HTX exchange. Furthermore, as one of the most active
FOF (Fund of Funds) funds, HTX Ventures invests in 30 top global
funds and collaborates with leading blockchain funds such as
Polychain, Dragonfly, Bankless, Gitcoin, Figment, Nomad, Animoca,
and Hack VC to jointly build a blockchain ecosystem.
Feel free to contact us for investment and collaboration
at VC@htx-inc.com
Company Website
https://www.htx.com/ventures
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SOURCE HTX Ventures