LONDON, Oct. 29, 2020 /PRNewswire/ — Huobi Group today announced that Alex Pack, a former managing partner of crypto investment firm Dragonfly Capital, has joined as a corporate investment advisor. In his new role, Pack will work closely with Huobi’s corporate investment team led by Chief Investment Officer Sharlyn Wu, a veteran banking executive who was recently appointed to oversee the company’s venture investments.
As a seasoned crypto investor, Pack brings a wealth of experience and unique Western perspective to the team. Pack will play an active role across all aspects of Huobi’s investment operations, from deal sourcing and due diligence to deal execution and portfolio support. Pack will also help finetune Huobi’s investment thesis and expand Huobi’s overseas presence.
“Alex has one of the sharpest minds in crypto. Not only does he understand the macro impact of DeFi and crypto, he’s also able to drill down into the specifics of different projects,” said Wu. “I’m thrilled to work with him again in a formal capacity as we expand our strategic investment efforts across the globe. Together, we will empower entrepreneurs from all over the world to build toward a new decentralized economy and revolutionize the existing financial system.”
“Sharlyn and I have known each other for years, and I have always regarded her as one of the most long term, visionary crypto thinkers in China,” said Alex Pack. “That’s why I was excited when I heard that she was joining Huobi, which is one of the most important companies in crypto. Huobi can be a total game-changer for the burgeoning decentralized economy, and I’m excited to support its efforts.”
Pack’s appointment comes at a critical juncture for the company as Huobi ramps up its global expansion on multiple fronts. Under Wu’s leadership, Huobi’s newly-formed DeFi division is leading an international consortium of centralized and decentralized financial service providers and platforms to drive cross-border collaboration and adoption through joint research, standardized protocols, events, and more.
The expansion of Huobi’s corporate investment arm, which has tens of millions of dollars earmarked for venture investments, marks the latest in Huobi’s push to grow its ecosystem beyond Asia and nurture global blockchain innovation. The corporate investment team works closely with industry leaders, entrepreneurs, and researchers to seek out the best talent and most promising projects in the crypto space.
Pack is one of the earliest institutional investors in crypto. In 2018, he co-founded Dragonfly Capital with Feng Bo, a $100M crypto-focused venture fund, and previously invested with Bain Capital Ventures and AngelList. He is an early investor behind many of the leading teams in crypto, including Compound Finance, MakerDAO, UMA Protocol, Amber Group, MatrixPort, Polychain Capital, Ethereum, and Cosmos.
About Huobi Group
Huobi Group is the world’s leading blockchain and cryptocurrency infrastructure provider with a financial product suite that includes the largest digital asset exchange by liquidity and real-trading volume. Trusted by users over 170 countries, the Huobi platform is dedicated to improving the freedom of money for users, and features an unmatched portfolio of crypto products and offerings, including: trading and finance, cryptocurrency finance infrastructure solutions, education, data and research, social welfare, investment and incubation, and many more. For more information, visit https://blog.hbg.com/
SOURCE Huobi DeFi Labs
Author: Huobi DeFi Labs
Despite strong security token growth, tZERO continues to lose money
While tZERO’s net revenues have nearly doubled year-over-year, Overstock’s fledgling security token exchange is still far from profitable.
Published on October 29, 2020
Despite explosive third-quarter growth in the security token sector, Overstock’s Q3 2020 earnings report reveals that its tZERO alternative trading system (ATS) has continued to lose money.
The ATS specializes in security tokens, consistently hosting more than 95% of the sector’s monthly trade volumes. tZERO saw dramatic growth in recent months, with monthly volume growing from less than $1 million in May to push $21.8 worth of trade in August — before sliding back to $9 million in September.
Although tZERO’s net revenue increased 97% year-over-year to $11.1 million, Overstock’s latest earnings report shows tZERO lost $12.4 million before taxes for the third quarter overall.
Looking at its performance over nine months ending on Sep. 30, tZERO posted a loss of $35.5 million despite net revenue of $34.1 million. Over the same period in 2019, tZERO netted $15.7 in revenue but lost $38.7 million.
In 2013, Overstock, then a successful online retail firm, became one of the first major mainstream businesses to support Bitcoin. Despite announcing it would shift away from retail to focus on blockchain and cryptocurrency technology in 2018, retail is the only segment of Overstock’s business that is currently profitable — driving $43 million in revenue last quarter.
Overstock conducted a $134 million initial coin offering (ICO) for tZERO in mid-2018.
Overstock venture arm Medici Ventures Inc, which provides ongoing support to the development of tokenization protocol Ravencoin (RVN), netted only $2.8 million in Q3 to post a quarterly loss of nearly $6.6 million overall.
On Oct. 28, Medici Ventures announced it had made an $8 million equity purchase in the Caribbean-focussed blockchain technology provider Bitt. Medici previously purchased $4 million of Bitt equity in 2016, followed by a $3 million equity purchase in 2018.
Report: Bitcoin Set for its Biggest Breakout Yet
A recent Coinmetrics report says on-chain fundamentals are hinting at bitcoin experiencing its biggest breakout yet. The report notes that bitcoin is already showing signs of this following its rise by about $1,000 in one day on October 21. The digital asset has subsequently set a new all-time high for the year.
While acknowledging the difficulty in predicting bitcoin’s future value due to its notorious volatility, authors of the report insist there is a difference between previous bull runs with the current one. According to their report, “BTC has been growing in ways that we have not seen in previous bull runs.”
Explaining their stance, the authors point to bitcoin’s growing correlation with gold as one of the reasons for their bullishness. In the report, the authors say bitcoin, which has had a low correlation with both gold and the U.S. dollar throughout most of its history, changed after March 12. The authors say:
As panic over Covid-19 rapidly set in, equities around the world crashed. Crypto went down with the rest of the markets, with BTC and ETH price both dropping about 50%. Since then, BTC’s correlation with gold has been near all-time highs while it’s correlation with the dollar has been at all-time lows.
According to the data, the bitcoin and gold correlation has been positive (above 0) for much of 2020 while the digital asset’s correlation with the US dollar has stayed negative during the same period. It is this growing relationship with gold that has some touting bitcoin as a form of digital gold.
Companies like Microstrategy and Square Inc recently announced their acquisition and subsequent holding of bitcoin as a treasury reserve asset.
Meanwhile, the report also points to another important signal, “the percent of supply held for at least one year (or in other words, the percent of supply that has not been moved on-chain as part of a transaction).” According to Coinmetrics, “as of October 25th, about 62.5% of the total BTC supply had been held for at least 1 year, which is close to all-time highs.”
As precedent shows, “the percent of supply unmoved for at least 1 year has peaked during periods where price has been at local lows.”
The report adds:
BTC’s velocity is also at its lowest levels since 2011. Velocity measures the number of times an average unit of supply has been transferred in the last year. High velocity means a relatively high turnover. A decreasing velocity suggests BTC is trending towards being used as a store of value as opposed to a medium of exchange.
Another metric suggesting which suggests a pending bitcoin breakout is the “number of addresses holding at least $100 worth of BTC (which) hit a new all-time high of 9.74M on October 22nd.”
In conclusion, the report states that historically, “bitcoin price has hit a local peak within 1.5 years of each previous halving.” As holding activity increasing and the “halving less than six months in the rearview, all signs are signaling that BTC is poised for takeoff.”
Do you agree with Coinmetrics’ assessment that bitcoin is about to breakout? Tell us what you think in the comments section below.
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