Crypto Bear Markets and Cross-border Investing

Last week, Larry Li, Managing Partner of Amino Capital, was invited to speak at F50 Synergy Blockchain Summit and Blockchain Connect Conference, where leading investment experts, tech executives, and blockchain entrepreneurs from across the globe congregated. Having backed numerous successful blockchain projects, Larry Li presented his vision and perspective on ongoing investment trends. Here are the highlights:

In terms of blockchain, there are many differences between the US and China arena to consider

China is an attractive competitive field with unique characteristics that entrepreneurs should take note of. For instance, in China, the foremost objective for a project is to gain as much territory as possible; projects should spread out and teams should embrace diverse opportunities. Furthermore, being commercially successful alone is insufficient. In China, maintaining a healthy relationship with the government is crucial.

Before entering a new market, a crucial consideration is the difference in consumer demographic; in this aspect, US and China’s crypto market could not be greater. In the United States, the crypto community predominantly consists of “geeks”, technology enthusiasts, and a relative few from the financial industry, while the community in China is composed of people from a wide range of industries and socioeconomics statuses. There is also difference between US and China crypto communities in terms of the average level of familiarity with underlying blockchain technology; for example, a “crypto expert” in China may be fairly new to blockchain, whereas many experts in the US have been crypto enthusiasts for several years. As such, entrepreneurs should respond to this difference in consumer population with a shift in strategy. Amino Capital prefers to invest locally: we look for entrepreneurs with a deep understanding of some of these disparities.

Primitive regulatory landscape provides opportunity for investors

Drawing an analogy to the early days of the stock market, investors like Andrew Carnegie profited immensely under regulatory uncertainty. However, once stock market regulations matured, those opportunities disappeared. At Amino, we like to invest in companies that have the power to shape society.

We like to invest in bear markets

Fundamentally, the golden rule of buying low and selling high creates profits for investors. Bear markets reward those who have an independent investment vision, and are steadfast in their discipline even in the face of uncertainty. Amino invested in and has been watching the blockchain space since five years ago.

For entrepreneurs: Raise as much money as you can today, while you still can, and hold onto it

Blockchain entrepreneurs must prepare for a sharp contraction of available venture funding in the event of a scenario like the dot-com bubble bust.