Hong Kong’s top VC firm approaches billionaires for $300 million Crypto funding
Amid the expanding crypto crackdown, Hong Kong Venture Capital giant, CMCC Global is launching yet another round for its crypto fund, aiming to accumulate $300 million this time around. Furthermore, the firm is reaching out to billionaire investors like Richard Li to bet on blockchain and Defi. Richard Li had already anchored CMCC’s last crypto funding round, in April which closed at nearly $90 million, through his investment manager Pacific Century Group.
“Martin and Charlie (CMCC founders) are able to get into crypto projects and get connected with the founders really early on, which makes them special,” said Daniel Wong, a senior vice president of Pacific Century Group.
Crypto Funds loophole
Hong Kong used to be a global crypto hub before the ban, however, the industry has found a loophole with crypto funds. They raise money for crypto, invest in crypto through that funding, and further issue shares against the bought crypto, with CMCC leading the industry in these crypto funding rounds. While the company’s majority stake in the venture is held by the founders, Martin Baumann, and Charlie Morris, who founded the company in 2016, Richard Li, along with the Gemini Trust Co. founders, Cameron and Tyler Winklevoss are also investors in CMCC’s holding entity.
“The underlying infrastructure is maturing to the point where we basically can have interesting applications…Particularly in Defi, we’ve seen higher quality teams.”, said Charlie Morris, who is one of the investors in the VC.
Hong Kong Crypto Industry fights back amid Crackdown
During the third quarter, the Securities and Futures Commission (SFC) of Hong Kong issued a notice, announcing a ban on CIS offerings to the public in Hong Kong without the SFC’s authorization. The commission further warned investors to be extra cautious if they still plan to go against the authorities and invest in an unauthorized investment scheme.
As the regulators are determined to close in on the crypto industry of Hong Kong, the crypto hub still has some fight left. Earlier this month, Powercrypto Holdings, a subsidiary of Powerbridge Technologies, announced the upcoming launch of a fleet of crypto miners for Bitcoin (BTC) and Ethereum (ETH) in Hong Kong. Furthermore, Powercrypto confirmed the eco-friendly and sustainable nature of its crypto mining operations to avoid the regulatory crackdown.
- Senators Reaffirm Commitment to Market Structure Bill After Meeting with Coinbase, Ripple
- How the Crypto Market Could React to the Next Fed Meeting on October 29?
- $1.68 Trillion T. Rowe Price Files for First Active Crypto ETF Holding BTC, ETH, SOL, and XRP
- Standard Chartered Predicts Bitcoin Could Drop Below $100K Amid U.S.–China Trade Tensions
- Rising Demand for Verifiable Crypto Ownership Drives Launch of Trezor Safe 7
- XRP Price Classical Pattern Points to a Rebound as XRPR ETF Hits $100M Milestone
- Chainlink Price Eyes $27 Rebound as Whales Accumulate 54M LINK
- Pi Network Price Wedge Signals a Rebound as Key Upgrades Raise Utility Hopes
- Solana Price Eyes $240 Recovery as Gemini Launches SOL-Reward Credit Card
- XRP Price Prediction Amid Evernorth’s $1B XRP Treasury Plan – Can XRP Hit $5?
- Ethereum Price Targets $8K Amid John Bollinger’s ‘W’ Bottom Signal and VanEck Staked ETF Filing
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
