From the "Virtual Asset Policy Declaration" issued by Hong Kong last year to the #香港web3嘉年华 held in Hong Kong recently, from crypto agency licenses to digital Hong Kong dollars. From the perspective of an individual investor, this article will take you through what opportunities we can get involved in the process of Hong Kong's ambition to become Asia's new crypto financial center?

01丨My view on hot spots in the secondary market

In the secondary market, it is actually very intuitive that it is the stimulation for Hong Kong concepts. Hong Kong concept tokens such as #CFX have very impressive increases, but these are not driven by incremental funds in essence, but rather the game of existing funds guided by market sentiment.

The outflow of profit-taking will cause investors who chase high prices in the secondary market in the short term to be trapped at a relatively high point, which is human nature that is difficult to resist.

From the perspective of regional policies, we need to think about whether institutional investors will put their funds in the current Hong Kong concept secondary market. At the current stage of the market, the answer is definitely no.

The institutional smart money that received the news in advance and ambushed last year may have completed the first stage of profit-taking. This is why I have always said: Don’t have an inexplicable "belief" in the Hong Kong hotspot at this stage.

  • Most beliefs are imposed.

Do short-term trading, don’t hold long-term. This has always been my attitude towards hot spots, even if the hot spot is sustainable. Therefore, it is not objective to say that Hong Kong stocks are not worth touching simply from the perspective of profit-taking.

02丨Regional benefits boost the industry

In addition to the secondary market being able to guide the market's capital sentiment, what is more worthy of attention is the layout of the primary market in the future. Hong Kong has announced the establishment of several special funds to support Web3 companies developing in Hong Kong. In addition to official funds, there are also primary market private equity funds flowing from Singapore and other places to Hong Kong.

These institutional funds are all funds that are clearly flowing into the primary market. For the industry, it can be said that they are incremental market funds that are clearly not flowing. However, due to the natural opposition between the primary market and the secondary market, such regional policies with official backgrounds will make more efforts and promote the sustainable development of the industry.

I personally believe that the most beneficial thing for investors in the cryptocurrency world is that the information in the primary and secondary markets is relatively transparent, and the threshold for investment and participation is relatively friendly. Whether investing in some community-oriented shares or tracking project airdrop opportunities, investors can get a share of the development of this region and industry.

03丨Some clear opportunities

At the end of this chapter, I have some investment opportunities related to the development of Hong Kong that I think are certain. I hope they can help you (for reference only).

1. Platform Coin

In the short term, buy some platform coins that have been active in Hong Kong in recent days, and wait for the announcement of the license in June (split warehouse). This is a very certain short-term opportunity. For a platform, the license is the top priority for regional development, and it is also a real asset of a platform. With the announcement of the license, the capital sentiment in the secondary market is bound to move. Ambush in advance can allow you to get chips with more price advantages.

2. Stablecoins

It is not about asking you to pay attention to a certain stablecoin, but to look for tokens linked to well-known issuers or custodians. Similar to the example of TRU and TUSD some time ago, even though the two did not empower each other, the market responded because they were developed by the same company. In the future, the issuance and custody of digital Hong Kong dollars will most likely repeat this situation.

3. RWA Concept

This concept may be relatively unfamiliar to most investors. It actually means "linking physical assets". This is a track with regional policy support that has both long-term and short-term opportunities, because my country has always been emphasizing: moving from virtual to real, and the virtual economy must empower the real economy. Therefore, this is a track with regional certainty in both the short and long term. The secondary market can search and screen among the existing Defi targets. At present, the most common example is actually stablecoins, but there are other use cases that deserve attention in the primary and secondary markets, such as:

  1. Securities Tokenization

  2. Real estate tokenization

  3. Carbon credit on-chain

These are all small tracks with great prospects. Currently, there are not many vertical projects in the industry that are engaged in these areas. We will give priority to investing in domestic projects. In this regard, it is impossible for the government to do all the fields by itself. Building a long-term partnership is a move that is more conducive to the development of the industry. ​

The above are what I personally consider to be non-deterministic opportunities for the time being. You can follow this idea to find targets to pay attention to, especially the news trends.

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