- Ivy Blocks’ offerings will also include an asset management platform.
- The company’s asset management division would make “liquidity investments”.
Exchange of digital assets Huobi Global has launched a new investment arm focusing on decentralized finance (DeFi) and Web3 initiatives, demonstrating venture capitalists’ growing interest in the blockchain economy.
Much Needed Support During Alleged Crypto Winter
A Huobi spokesperson revealed that the new investment arm, dubbed Ivy Blocks, had over $1 billion in crypto assets under control for deployment. According to the business, this money would be used to “identifying and investing in promising blockchain projects.”
Also included in Ivy Blocks’ offerings are an asset management platform, a new blockchain incubator, and a specialized research arm for blockchain initiatives. According to Huobi Global’s chief financial officer, Lily Zhang, the company’s asset management division would make “liquidity investments” to aid with the launch of the DeFi and Web3 initiatives.
It was also revealed on Friday that Capricorn Finance, an automated market maker based on the Cube blockchain, was the first to receive an investment. This occurs at a time when the entire worth of the industry has dropped by more than half. According to industry statistics, there is over $133 billion in total value locked in the DeFi sector. In December 2021, DeFi TVL reached a north of $316 billion.
Since 2022, the so-called crypto winter has gripped the market. According to market experts, “irrational” periods in which asset values are bought recklessly are followed by “market-cleansing” bear cycles that reduce volatility are beneficial.
Web3 and metaverse-based projects are receiving the most attention from venture capitalists. According to data, $14.6 billion was invested in blockchain and crypto projects in the first three months of the year. This is compared to the $30.5 billion venture capitalists invested in all of 2021.