News roundup — Blockchain investments
What are the latest investments in blockchain? Here is a summary of recent news about blockchain-related funding:
Japan’s Gumi launches cryptocurrency/blockchain fund
The Japanese mobile game company Gumi recently launched a new fund, gumi Cryptos, to “invest in promising cryptocurrency and blockchain technology companies”. According to Gumi, the fund — led by Gumi founder and CEO Hironao Kunimitsu and Evercoin founder Miko Matsumura, and with an initial value of $30m — offers portfolio companies “a strategic venture capital investment partner with unique access to the Japan cryptocurrency market through its network of investors and management board”. Among the projects it is funding to start are Basis, Origin Protocol, Pryze and Robot Cache. In a Medium podcast interview with Titan Digital Asset Group’s Taotao He, Matsumura said: “It goes without saying that I am 100 per cent dedicated to the emergence of the global cryptoeconomy and feel grateful to be offered an opportunity to accelerate global adoption of crypto assets. Through our initial fund, we hope to accelerate at least 50 new ventures with capital infusion and Japanese business networks which will further the growth of the global crypto economy, generate millions of new wallets, establish new infrastructure tokens and platforms, popularise cryptocurrency worldwide and further establish Japan as the world’s largest and most liquid cryptoeconomy.”
New Blockchain Ireland platform to promote regional ecosystem development
The Irish Blockchain Expert Group announced the launch of Blockchain Ireland, an online platform aimed at promoting Ireland as “a blockchain centre of excellence” on 11 June. The initiative will be led by IDA Ireland, the country’s internal investment promotion agency. IDA Ireland chief information officer Keith Fingleton said in a press statement: “IBEG, and the Blockchain Ireland initiative, will assist blockchain projects and businesses in leveraging the beneficial environment in Ireland to foster increased innovation, and develop a national, European, and international blockchain ecosystem.” According to IDA Ireland, the platform “will provide information on setting up a business in Ireland, available services and support for blockchain projects, upcoming blockchain events within the country, as well as an overview of the key domestic and international stakeholders within the blockchain ecosystem”
Binance Labs plans $1bn ‘Ecosystem Fund’
Binance Labs, the research division of the Binance cryptocurrency exchange, plans to establish a $1bn ‘Community Influence Fund’, as well as another ecosystem fund, with 20 future partners. “Binance will provide financial support as an LP, as well as share incubation projects from Binance Labs,” the organisation said in its announcement on Medium. “Members of the Binance Ecosystem Fund will be given priority in recommending projects to Binance Labs. All investments will be made in Binance Coin, BNB.” Details about the application portal and rules are expected to be released “shortly”, the company added, and applicants will be required to have minimum accumulated funds of $100m.
Report: Financial services spend around $1.7bn annually on blockchain
The financial services sector is spending about $1.7bn annually on blockchain projects and initiatives, according to a recent report from the US-based market advisory firm Greenwich Associates. Based on 200 interviews with market participants, the report is “one of the largest and most comprehensive studies on the topic to date”, according to the firm. It found that, in 2017, financial services budgets for blockchain grew by around 67 per cent, with one in 10 organisations reporting spending of more than $10m. “More than half the executives we interviewed told us that implementing DLT was harder than they expected,” Richard Johnson, report author and vice president of Greenwich’s market structure and technology practice, said in a press announcement. “Nevertheless, more than three-quarters of projects currently under development are expected to be live within two years.”
