Crypto VC firm gears up to invest while tech majors stay away
Business & Technology
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China’s ban on the mining, trading, and exchanging of cryptocurrency into fiat money can’t prevent some gray-area activities, as we wrote last week. Instead, its desire to eliminate crypto while protecting the underlying blockchain technology is producing divergent outcomes:
- Crypto VC firm Sino Global Capital is doling out $200 million to support DeFi, NFTs, and other projects frowned upon by China — even though it’s based in Beijing.
- Meanwhile, Alibaba and Tencent won’t use the term “NFT,” instead calling artwork and other creative assets sold on their NFT platforms “digital collectibles.”
Key question: China likes blockchain, but not crypto tokens; will that prove self-contradictory in the end?
- After all, tokens, which store value, are the main reason people buy into blockchain technology in the first place — literally.
- Even so, Beijing is hoping the doublethink will work. Alibaba and Tencent are trying to help clarify that distinction, issuing twin condemnations of illegal crypto trading and price speculation after their NFT rebrand.
The takeaway: Just like housing speculation, China isn’t a fan of the financial risks and price volatility associated with crypto investing. But as long as legal lines remain blurry, crypto is likely to remain in play, especially on DeFi exchanges.
