Fresh out of the studio, Cosmo Jiang, Jin Kang & Junney Kang from Global Coin Research joined us in a roundtable to share the key takeaways from their market and investment report for Q1 2023. We looked at how the builders and venture capital in web3 and crypto are surviving through a tough bearish market despite the rebound of Bitcoin and Ethereum from the trading front. We continued the conversation to address whether Asia from China to India is now leading the resurgent activity for the web3 and crypto market with its crypto-friendly regulations and the potential to take away the lead from the US due to the recent aggressive anti-crypto regulation from the SEC in the US government.
"Here in the US and to your US listeners at least, I think what maybe is lost is that despite the US's very aggressive stance against crypto, the totally opposite attitude is being adopted by governments on the other side of the world. Jin talked a little bit about Japan. I would just highlight Hong Kong as a proxy to China, mainland China. It's very clear that China is opening up to crypto through Hong Kong. This is a total about-face from less than two years ago when China banned crypto trading and mining in 2021, and all of a sudden it's reopening to retail in Hong Kong in June, like coming up. I think China's reopening up to crypto is in response to a few factors, which gives me confidence that this isn't short-term or short-lived kind of thing. First, China is really increasing the priority of economic growth over social control in their economy. I mean, a totally different issue than Japan, which has been dealing with 0% growth for 20 years. But China going from six to five is really scary, or five to four is really scary for other people. And so, in particular, its tech giants have slowed a lot because of regulation in China and so they're trying to get that back right by looking at crypto. Second is that China's really trying to regain lost mindshare from the last few years in Asia, the centre of gravity for capital in Asia has very seriously shifted towards Singapore after the Hong Kong political issues, after China's extended covid lockdown." - Cosmo Jiang, Global Coin Research
Author disclosure: I am a supporter of Global Coin Research and might hold different cryptocurrencies mentioned here. This is not investment, financial or even life advice and the content is for informational purposes. Please do your own research when it comes to crypto and web3.
- GCR Team on the panel: Cosmo Jiang (@cosmo_jiang, Linkedin), Founder of digital assets fund Nova River, Head of Strategy, Skolem, Member of Global Coin Research (GCR) and host of Liquid - Web3 investing Podcast by GCR (Apple Podcasts); Jin Kang (@TheJinKang , Linkedin), Deal Lead, Global Coin Research and Junney Kang, Deal Lead, Global Coin Research (@nonfungie, Linkedin)
- Since our last conversation, what have you been up to?
- As we have Junney joining us for the first time, can you introduce yourself and what is your role and coverage with Global Coin Research?
- Given that we have gone video, I have asked each of you this: what lessons can you share on your career journey with my audience?
- What are the key highlights for the market and investment trends review in Q1 2023?
- How does the macro picture influence the web3 and crypto market?
- In 2022, we saw that the prices of cryptocurrencies are in tandem with the S&P 500, but in 2023, Bitcoin and Ethereum prices are moving up when the bank runs happen (or it looks like people are betting on the bank runs will force the Fed to print money and drop interest rates. How should we think about the market?
- What are your perspectives on the recent 1 million bet by Balaji Srinivasan that pushes the bitcoin against the ongoing bank runs starting with Silicon Valley Bank and Signature Bank? Note that Balaji has conceded the bet recently just before the podcast.
- Given that GCR is an investment & research DAO, what is the atmosphere for web3 and crypto startups seeking financing?
- Based on your research, what is the current thinking in the crypto VCs when it comes to investment? Is it just that everyone is holding their dry powder or are they only investing in certain categories?
- With the L2s starting their airdrops and the Ethereum community delivering the merge last August and now the Sheppella (Shanghai) upgrade on 12 April 2023, are there still white spaces for alt-L1 projects?
- What about the web3 decentralised apps that will bring the billion out there into the space? Are VCs still looking at these apps?
- How are the GCR-funded companies such as Mysten Labs (known for their Sui frameworks), Utopia Labs and C3?
- [Roundtable Question] There have been brief mentions of Asia leading the web3 activity given the current anti-crypto stance from the current administration and the SEC Chairman Gary Gensler, is it true that Asia is rising similar to the 2019-2022 wave before the US started to come in again? Is the rise in web3 activity because of Hong Kong, Dubai, London and Singapore relaxing regulations and allowing banks to take crypto deposits?
- [Roundtable Question] Will the US lose their dominance in crypto and web3 with the rest of the world picking up the tab?
- What are you looking forward to in Q2 2023?
- Any recommendations which have inspired your life?
- How can my audience find you?
- Cosmo's recommendation: Using ChatGPT for cooking recipes
- Jin Kang's recommendation: Never Split the Difference by Chris Voss & Tal Rahz
- Junney's recommendation: The One Thing by Gary Keller and Jay Papasan