Singapore based Mooncake Capital, a venture capital firm raises $10M for Asian based crypto projects.
Mooncake Capital runs two funds namely a Crypto Fund and a Connect Fund.
The venture capital firm has made investments in Ethereum, Binance, Ripple, Huobi, OmiseGo among various companies till now from the crypto fund.
It has raised a total of US 10$ million dollar through its new fund project called Connect Fund. The new fund will make investments in Asian countries such as Singapore, China, Hong Kong through bringing finances from non-Asian countries such as Latin America, a few parts of Southeast Asian countries, and Europe.
The venture capital firm said it will take investments in cryptocurrencies, although the company said it might take in the form of over-the-counter trades (OTC). The over-the-counter trades will help in making investments due to the ban of cryptocurrencies in China.
Patrick Lee, partner at Mooncake Capital has high hopes for the Chinese and Indonesian investors.
“The Connect Fund is open to anyone, but we are getting extensive interest from Indonesia. We consistently see large OTC volumes in Indonesia – about US$1 million to US$2 million a day,”Patrick Lee, partner at Mooncake Capital
Although, there is a general misconception that China and cryptocurrencies do not go well together because of the ban of cryptos in the country but Lee believes that there is an “unbelievable amount of money” that is being currently poured into Chinese crypto projects.
“The fiat-to-crypto problem in China is solved via OTC, either through WeChat groups or exchange OTC sections like Huobi OTC,” while adding that the exchanges are run in Singapore or Seychelles with staff running the office from Shanghai or Beijing.
It’s a bit of a different game in China – the market is unforgiving, scams are everywhere – but if you do it right, the returns are […] massive”.Patrick Lee, partner at Mooncake Capital
Mooncake Capital intends to provide a way for foreigners to invest in crypto projects and companies in China. “It is not going to use the Connect Fund to expand in other countries but will invest its reserves in areas of its expertise in markets where it has a lot of prestige. That will reduce risks for foreign investors.”