The biggest difference between this cycle and the previous cycle is that there are no applications such as NFT that even outsiders know about, resulting in a lack of new liquidity in the market. However, a recent report revealed that family offices that manage huge assets have become interested in topics such as cryptocurrency, AI, and games. It also stated that these family offices have seen the high valuations given by these venture capital institutions. If family offices enter the game, it is expected to solve the dilemma of many altcoins having no one to take over. Is this a wishful thinking of the currency circle, or is it true?
37% of family offices focus on digital technology adoption, with Asia being the focus of development
The report pointed out that more and more family offices with at least US$100 million in funds under management are beginning to look for "alternative investments" such as cryptocurrency, artificial intelligence and games. There are currently 8,030 family offices worldwide, and their assets under management are expected to increase 189% by 2030 to $9.5 trillion.
The report even named Asia as the next focus of family office development, and Singapore, where Token 2049 will be held this year, is even more of a top priority.
Manana Samuseva, founder of FOIS (Family Office Investor Summit) said: "The Asia-Pacific region is expected to lead global family office wealth growth. By 2025, assets under management in Singapore may grow by 10% to US$5.41 trillion. This growth is significant. This is partly due to net inflows into alternative investments, with 37% of family offices anticipating the widespread adoption of digital technologies and 32% focusing on sustainable investments.”
“While short-term, profit-focused technology investment has slowed. As artificial intelligence hype continues, the market remains highly sensitive to external factors, suggesting that the digital asset class, supported by greater accessibility and cultural shifts, There is a shift towards market maturity." Manana Samuseva added, saying that in today's viral context of technological democracy and attention economy, Generation Z investors are more inclined to invest funds in areas that contribute to social progress.
Family offices invest 1% of capital and altcoins increase by 16%
“We are at an interesting moment in the token economy. Despite the downturn in the altcoin market, new businesses preparing to enter the token market are seeing extremely high valuations set by venture capitalists. This trend makes liquid token investments Increasingly, early-stage investments are becoming more attractive, marking a major shift in the crypto industry," Kavita Gupta, founder of Delta Blockchain Fund, said at the Family Office Investor Summit.
The biggest problem with highly valued currencies is that there is no actual buying to support the valuation, resulting in an imbalance between supply and demand. If 1% of the 9.5 trillion in funds from family offices flows into the market, there will also be 95 billion in buying orders. We can use TradingView’s Total 3 chart to find that the market value of cryptocurrencies after excluding Bitcoin, Ethereum and stablecoins is approximately US$581.7 billion. No matter what, the market still depends on the development of practical applications and the increase in token value in the future. Rough selling and taking over are tantamount to long-term development.
Electric Capital’s Avichal Garg said family offices are increasingly recognizing the potential of artificial intelligence, deep tech and decentralized finance to boost their long-term innovation and growth. On the other hand, some family offices with a cryptocurrency background choose to continue to work hard. Avenir Capital, the family office of Huobi founder Li Lin, established Avenir Crypto, a crypto quantitative fund. The initial US$500 million in funds will be used to purchase 200 million USDT and 3,000 bits. coins and 50,000 Ethereum coins.
(Huobi founder Li Lin is making frequent moves! After acquiring the Japanese exchange, it is rumored that he will launch 500 million magnesium funds in Tokyo)
This article: Can VC coins be saved? Family office funds are optimistic about high valuations and are expected to enter the altcoin market. The post appeared first on Chain News ABMedia.