Asia-based venture capital (VC) firm CMCC Global has recently announced the launch of its Titan Fund, allocating a remarkable $100 million to aid blockchain startups in the region. Founded in 2016, CMCC Global was one of the region’s pioneering VC firms, solely focusing on the development of the blockchain ecosystem. The firm’s announcement detailed Hong Kong as the initial area of focus before expansion is made to other Asian hubs and subsequently globally.
A unique detail of the Titan Fund is that it isn’t solely funded by CMCC Global. Notable contributors include Winklevoss Capital owned by the Winklevoss Twins of Gemini fame, and Animoca Brands, along with other investors such as Block.one, Pacific Century Group, Jebsen Capital, just to name a few.
Undeniably, CMCC Global has been an influential player in the crypto VC scene for several years now. Their strong relationships with firms such as Hong Kong-based Animoca Brands are evident, including a recent participation in a $20 million investment round on the newly acquired non-fungible token (NFT) ecosystem known as ‘Mocaverse’.
Despite the firm’s clear Asian roots, the organization continues to grow globally, extending operations into North America and Europe. Yet with all the positivity surrounding the launch of the Titan Fund, the reality is that globally, the amount of capital being injected into crypto-based businesses is shrinking. Research data by RootData showcases that investments in the crypto industry have dropped by an alarming 70% over a year. From $1.8 billion across 149 rounds in June 2022 to a mere $520 million across 83 projects in June 2023.
This dwindling interest in cryptocurrency is not a direct reflection of the level of innovation within the sector, but rather a response to the increasingly stringent regulatory environment and the subsequent market downturns. However, it’s noted that Hong Kong’s government has revised their stance on cryptocurrency in October 2022, creating an appealing destination for crypto businesses facing opposition in their home countries. This dynamic interaction of innovative funding models, declining global capital interest, and shifting governmental attitudes, presents both promise and peril in the evolving world of cryptocurrency and blockchain technology.
Source: Cryptonews
