VC investment ICO – for short-term profitability or technical beliefs?


nnnDuring the break: ICO in the emerging start-up companies to bring sufficient funds at the same time also attracted the attention of traditional venture capital firms. As for the venture capital firm why to invest in ICO, this article explained this, although some companies to join the field in order to obtain short-term profits, but more venture capital companies believe that the digital currency brought about by the great potential of technology Support ICO, in promoting the industry’s infrastructure construction and market development.n
nnTranslated by: Inan
nPanos Mourdoukoutas, a professor at Long Island University and Columbia University, recently wrote that venture capital firms and investors are focusing on several prominent digital currencies. In particular, he highlighted the involvement of venture capital firms in several APC ICOs.n
nCointelegraph has reported on July 7 that some Bitcoin and block chain start-ups have begun to attract traditional venture capital firms. In fact, some of the world’s largest companies, such as Hangzhou’s Huali Group, have recently begun to invest in ICO and block chain projects.n
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nDoes ICO need venture?n
nAnalysts such as Mourdoukoutas do not believe that the ICO’s goal is to completely eliminate the need for VC investors.n
nICO aims to centralize financing; it should not be a tool for venture capital. Some block-chain projects and ICOs seem to be using the current speculative frenzy to gain venture capital.n
nNot all of the digital currency and block chain venture capital are seeking to buy ICO, and quickly increase their short-term maximum profits. Some venture capitalists have played a “patient capital” role to maximize long-term profits.n
nNot all venture capital firms and institutional investors in the digital money sector want to accumulate a lot of wealth in a short period of time.n
nSome focus on the field of venture capital firms really help in the development of digital money industry. They support early start-ups and support their vision, creating large enterprises with stable revenue sources and millions of active users.n
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nIndustry Infrastructure and Growthn
nFor example, Coinbase became the first company in the Bitcoin industry to break through $ 1 billion earlier this year and will launch a $ 1 million financing campaign to expand its international services and business.n
nExchange and wallet platforms like Coinbase are not always profitable. Blockchain is the world’s second largest bit currency purse platform, although its service margins are low, less income, but also in June a new round of financing to raise 40 million US dollars.n
nAs a result, the vast majority of venture capital firms in the field have actually contributed to the infrastructure of exchanges, trading platforms and wallets.n
nWhile venture capital firms that are new to digital money may be holding a lot of money in a short period of time, most venture capital firms in the sector have played a key role in market growth to $ 115 billion.n
nSome venture capital firms may treat digital money as a short-term profit, while others venture capital firms and angel investors really believe in the technology provided by the currency, currency and other digital currencies.n

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