Huobi, the leading cryptocurrency exchange has revealed that it will be creating a new investment arm in order to deal with decentralized finance as well as Web3 projects. Ivy Blocks, as it was named by the exchange, will focus on finding projects in seed stages to aid them via financing and other supporting services with the objective of making a “better, more inclusive” Web3 ecosystem.
Huobi with Ivy Blocks enters the Web3 Investing Scene
Web3 is a growing industry, with many crypto exchanges joining the market. Huobi, the top-ten cryptocurrency exchange, announced its launch of an investment arm. Ivy Blocks will be responsible for identifying and nurturing Web3 and other decentralized financial projects that could prove to be successful.
According to a PR statement issued by the company, Ivy Blocks will have a multi-billion dollar war chest to complete its goal, something that makes it “well-placed to take advantage of unique opportunities in cryptocurrency markets globally.” To support these projects, ideally, in their seed or growing stages, Ivy blocks will launch three core services.
This includes an asset platform that manages decentralized financing (defi) projects and an incubation section. There is also a crypto platform with more research driven. The companies who fall under Ivy Blocks will have access to all of these services.
Financing Power
A key component of any investment firm’s support for its portfolio companies is financing. Ivy Blocks’ operation is simple and it seeks to offer this economic support to startups, which commonly fail due to finance-related issues. Huobi CFO Lily Zhang spoke out about the relationship between the company and its portfolio projects.
A lot of promising projects face liquidity limitations and lack of support from the go-to markets, which are significant hindrances to growth. Incubation and liquidity services are two of the key elements to creating an inclusive, better defi and Web3 ecosystem.
Ivy Blocks currently manages more than 1billion assets (AUM) and has a variety of incubated companies. Capricorn Finance (an automated market maker) built on top the Cube Blockchain is just one example.
Web3 project investments were also made recently by exchanges. Binance Labs reported on June 3 that the trading arm of the exchange had launched a fund worth $500 million for Web3 projects.
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