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
Photo -
https://mma.prnewswire.com/media/2477416/HTX_Ventures.jpg
Logo -
https://mma.prnewswire.com/media/2391903/image_ID__Logo.jpg
View original
content:https://www.prnewswire.co.uk/news-releases/htx-ventures-releases-2024-half-year-investment-report-highlighting-six-key-investment-directions-302216835.html