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A 16z crypto fund launch: a change of guard from retail to sophisticated crypto investing

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crypto

In a volatile market like crypto, the old Wall Street adage that says, “Bulls make money, bears make money, but pigs get slaughtered” still makes total sense. Basically, it means you pretty much lose every time you remain undecided on whether you want to be a market bull or a bear. Just like there is no middle ground while investing in stocks and securities, the cryptocurrency market is unforgiving to those who become too greedy to decide where they stand. Simply put, you are either in it for the long run or the short run.

This cannot be pointed out more clearly than the crypto boom that happened late last year and early 2018 when Bitcoin traded at a price as high as $20,000 per coin. Say what you may, but both bullish and bear investors made money at the time. However, a good number of retail investors who had just caught the hype hoped the market would go much higher and therefore they paid a heavy price for their greed or lack of sufficient market knowledge.

The market has been crashing

Since the beginning of the year, the crypto market has been on a steady decline losing over 50 percent of its December 2017 peak value in the first quarter of 2018. As a result, traders, investors, and market speculators have been concerned with trying to figure out when and if the bull market will recover.

According to Bill Barhydt, the CEO crypto trading platform by name of Abra, the biggest contributor to the market decline is the fact that the euphoria that brought about the bullish rally at the start of 2018 has “come down to earth” as a result of a market mostly driven by retail investors.

However, while retail investors exit the market due to a long-lasting bear trend and a series of violently volatile market movements, institutional investors are starting to pay attention and even investing in crypto.

The launch of an ‘all-weather’ crypto venture fund

Cue a 16z crypto fund (a $300 million venture fund that recently announced the launch of its venture capital firm that will focus on crypto projects). In fact, a16z crypto fund is coming into a market that is not only on a bear trend but stands a chance of declining much further.

According to Spencer Bogart, a partner at Blockchain capital, the crypto market’s liquid providers are looking to sell due to the decline by over 50 percent since January. As a result, Bogart believes that prices could go “artificially lower”.

However, as the overall market struggled to find footing in the first quilter of 2018, institutional investors like a16z crypto fund are doubling down with a dedication to crypto companies. In fact, according to Chris Dixon, a general partner at a16zcrypto, “We’ve experienced ups and downs in the cryptocurrency market, and expect there will be many more,” however he continued to mention that “There’s potential in the technology, and some of the downturns can be the best investments.”

A16zcrypto is an “all-weather” fund that boasts of over 5 years of long-term investment in crypto’s early stage coins, later stage networks and tokens. The company is set to be a consistent and aggressive investor over time no matter the market conditions. Dixon further told CNBC that “there are wild fluctuations in the price, and we see that as an opportunity”

Leading the firm will be Katie Haun (a former U.S Department of Justice Prosecutor) who has experience helping crypto startups navigate the rough and tough tides of regulation in the US. Apart from being a board of director at Coinbase, she also worked on Silk Road’s high profile crypto related cases in 2015.

In closing

The crypto market is still at its nascent years. As a result, institutional investment firms like a16zcrypto are not only changing the trend from a market dominated by retail investors but also providing sustainable support that will eventually enable crypto to solve future and present problems in the world.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Global Coin Report and/or its affiliates, employees, writers, and subcontractors are cryptocurrency investors and from time to time may or may not have holdings in some of the coins or tokens they cover. Please conduct your own thorough research before investing in any cryptocurrency and read our full disclaimer.

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Bitcoin

Blockchain technology outshines Bitcoin and Gold during global pandemic

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As the popularity of cryptocurrencies such as Bitcoin begins to level up with investments made in metals such as Gold, together they have both made significant advantages for investors who have taken a leap to invest in them.

However, thanks to the pandemic and the dynamic shift in investing and the economy, many investors have seen fluctuating losses and gains thanks to the uncertainty of the current business world. 

Many investors that backed companies who have exposure to blockchain technology have seen an approximate amount of 54% return on investments over the past year. This is even after considering how hard the global tech market and companies have been hit since the beginning of the pandemic.

What is blockchain technology?

Blockchain technology was first introduced as a supportive technology for Bitcoin. A blockchain is a simple, unchangeable and un-hackable digital ledger that holds transactions in little blocks attached to a chain. The transaction is duplicated and distributed across the entire network of systems on the blockchain, making it available for everyone on the network to see. 

Each block in the chain contains various transactions which are recorded on the participant ledger every time a transaction takes place. The database is decentralised and is managed by multiple participants known as Distributed Ledger Technology (DLT).

Although blockchain technology was birthed from Bitcoin and was widely adopted for the use of cryptocurrencies, the way it works and its security has made…

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Bitcoin

Bitcoin Surges After Tesla Bought $1.5 Billion Worth of BTC

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Cryptocurrency

The sudden rise of Bitcoin has been connected to the decision taken by the Tesla electric car company to buy $1.5 billion worth of Bitcoin.

The company explained in a filing with the Securities and Exchange Commission (SEC) that it bought Bitcoin to diversify its cash returns and more flexibility.

Musk’s Tweets also impacted Dogecoin’s price

Tesla also added that it will start accepting Bitcoin payments for all its products, although this will be based on a limited basis and applicable laws. If the company concludes and starts accepting cryptocurrency, it will make it the first major car manufacturer to accept Bitcoin payments. The company’s founder and Chief Executive Officer Elon Musk has developed an interest in Bitcoin and cryptocurrencies.

He has been tweeting severally about the viability of the Dogecoin (DOGE), which doesn’t have an important market value attached to it.

Few hours after endorsing Dogecoin, the cryptocurrency rose by an impressive 50%. But regulatory authorities are still concerned about the risks in cryptocurrency investments, with several regulatory bodies warning traders and investors they could lose all their money from crypto investments.

But for Tesla, the company decides to diversify its funds and increased its cash returns. However, Tesla also warned investors about the volatility of Bitcoin’s price in its SEC filing. According to the SEC…

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Altcoins

XNO Token of Xeno NFT Hub listed on Bithumb Korea Exchange

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Hong Kong, Hong Kong, 25th January, 2021, // ChainWire //

Xeno Holdings Limited (xno.live ), a blockchain solutions company based in Hong Kong, has announced the listing of its ecosystem utility token XNO on the ‘Bithumb Korea’ cryptocurrency exchange on January 21st 2021.

Xeno NFT Hub (market.xno.live ), developed by Xeno Holdings, enables easy minting of digital items into NFTs while also providing a marketplace where anyone can securely trade NFTs.

The Xeno NFT Hub project team includes former members of the technology project Yosemite X based in San Francisco and professionals such as Gabby Dizon who is a games industry expert and NFT space influencer based in Southeast Asia.

NFT(Non-Fungible Token) technology has recently gained huge focus in the blockchain arena and beyond, making waves in the online gaming sector, the art world, and the digital copyrights industry in recent years. The strongest feature of NFTs is that “NFTs are unique digital assets that cannot be replaced or forged”. Unlike fungible tokens such as Bitcoin or Ether, NFTs are not interchangeable for other tokens of the same type but instead each NFT has a unique value and specific information that cannot be replaced. This fact makes NFTs the perfect solution to record and prove ownership of digital and real-world items like works of art, game items, limited-edition collectibles, and more.

NFTs are already being actively traded in markets globally. For…

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