Crypto exchange Huobi Global has launched a new venture capital arm aimed at investing in upcoming blockchain, web3 and DeFi projects.
The spin-off is called Ivy Blocks and has more than $1 billion in assets under management as part of its “war chest,” the exchange said in a statement.
The first project backed by Ivy Blocks is Capricorn Finance, a decentralized exchange built on the Cube chain. Capricorn also offers automated money market functionality to other DeFi protocols.
Despite an 80% crash in Defi value this year, Huobi sees space as one of the “most promising applications” of the decentralized internet.
Huobi’s Ivy Blocks will have three main sectors
Ivy Blocks will provide support for DeFi platforms on three main fronts. The project will consist of an asset management platform, an early-stage blockchain incubator, and a crypto and web3 research hub.
Beyond just funding, the project will also offer technical advice, mentorship programs, and help blockchains come up with token listings.
Many promising projects tend to encounter liquidity constraints and a lack of go-to-market support, which present significant barriers to growth.
Lily Zhang, CFO of Huobi
Huobi believes that a lot of upcoming DeFi projects fail due to a lack of support, which he aims to provide.
Investment comes even as DeFi value plummets this year
Huobi’s push towards DeFi comes after the space lost more than half of its value this year, amid a broader crypto meltdown. Data from DeFi Llama shows that the total value locked in DeFi fell nearly 80% to $90.4 billion from $210 billion at the start of the year.
Much of those losses also come from those of Terra, whose implosion wiped out around $40 billion in a month.
A broader crypto meltdown has also rattled DeFi valuations as most major tokens used to transact in the space have seen a sharp drop in price.
Ethereum – the largest DeFi blockchain by value, saw the price of the ETH token fall by 56% in 2022.
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This Crypto Exchange Invests $1 Billion In DeFi Despite An 80% Crash
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