OP Crypto Capital founder cites gaming, Web 3 as drivers of crypto economy

Fresh off the launch of its $25 million enterprise fund, OP Crypto Capital Management Ltd. seeks to play a extra energetic function within the lifecycle of blockchain startups starting from gaming to Web 3.0. Former Huobi govt turned founder David Gan spoke with (*3*) concerning the transition from his former firm, the expansion potential of crypto niches and the function his fund will play in bootstrapping the subsequent technology of crypto startups.

Seamless transition

After greater than three years at Huobi Ventures and Huobi Labs, Gan transitioned to his new function seamlessly, he mentioned. One of the first motivations for creating the brand new fund was larger flexibility and autonomy in funding selections. “In my former agency, as we grew to 2,000 staff, it was harder and difficult to maneuver quick, contemplating the fast tempo of innovation within the crypto trade,” he defined.

A secular bull marketplace for Bitcoin (BTC) and widespread institutional adoption of digital property made now the perfect time to spin off a brand new funding fund, he added.

Increasing startup help

Venture funds have poured billions of {dollars} into crypto and blockchain startups this 12 months alone, underscoring the idea that digital property are poised to disrupt the worldwide economy in profound methods. Gan’s fund makes an attempt to distinguish itself from different VCs by providing pre- and post-deal operational help. To help in that course of, OP Crypto Capital has recruited advertising and marketing and operations professionals previously of Huobi, Binance, OKEx and different exchanges. Projects funded by way of OP Capital can even obtain extra avenues for liquidity by way of coin choices, sensible contract audits and institutional adoption.

Related: 62% of establishments to start out investing in crypto inside a 12 months: Survey

The actual worth proposition of Web 3

When requested concerning the worth proposition of Web 3 — a broad idea that describes the third technology of web companies — Gan mentioned blockchain expertise revolutionizes how web-based knowledge is saved, processed and managed. He described the emergence of a “common state layer” for managing knowledge, which allows worth settlement instantly on the web. He additional defined:

“It permits us to ship recordsdata in a copy-protected manner, enabling true peer-to-peer transactions with out intermediaries. In essence, Web 3 supplies people with a brand new manner to make use of the Internet with out giving up their privateness and invaluable info.”

While the corporate hasn’t disclosed the tasks it seeks to fund, the emergence of an interconnected Web 3 world is on the middle of its funding selections. This contains funding tasks that bridge the hole between centralized finance, DeFi and the so-called metaverse.

Related: DeFi and Web 3.0: Unleashing artistic juices with decentralized finance

Sizing up the crypto gaming economy

One of Gan’s boldest predictions is that gaming would be the first to convey 100 million customers to the crypto market. The intersection of gaming and crypto has been gaining momentum, even in conventional worlds, because of the expansion of non-fungible tokens, which have paved the best way for true possession of digital objects which might be more and more getting used throughout gaming platforms.

“We consider digital communities, significantly gaming communities, will turn into ubiquitous, and we’re dedicated to fostering a wholesome sense of group, place, and function as a way of enabling and never merely an escape,” Gan mentioned, noting that roughly one-third of the worldwide inhabitants could be labeled as players in a single sense or one other.

He additional defined that 41.9 million players personal cryptocurrency and 38% of them are Millennials between the ages of 21 and 38, in keeping with analysis from Newswagg. He continued:

“Millennial players maintain 55% of all crypto property, in comparison with simply 5% of all Millenials, displaying that players are much more more likely to maintain crypto than the common particular person. Eighty % of players who personal crypto are additionally involved in utilizing cryptocurrency to buy video games and in-game objects.”

VC look forward

The development of crypto-focused enterprise capital means that buyers are taking a look at blockchain expertise and digital property past their fast affect on the worth of Bitcoin, Ether (ETH) and different altcoins. Funding was unaffected by the market meltdown that started in Spring 2021. As (*3*) continues to report, crypto exchanges and blockchain infrastructure suppliers have generated substantial VC curiosity in latest months.