News Roundup — Blockchain Investments
Who’s investing in blockchain projects and startups, and which companies are seeing new funds for their efforts? Here is a review of some recent investment developments:
Korean agency to invest $9m in 12 blockchain projects
The Korea Internet and Security Agency (KISA) plans to invest $9m in 12 blockchain public-demonstration projects over the coming year, according to a report in ZDNet Korea. The investment (10bn won) is aimed at boosting the Korean blockchain market. “We are going to lead a blockchain technology by creating a new market and carrying out public-part demonstration projects and private-led projects,” KISA blockchain director Min Kyung-sik said. “We are considering a plan to expand the entire public sector in the future.” ZDNet Korea reported that KISA has to date reviewed 72 blockchain project proposals from 41 organisations. As of this year, the agency has invested 4.2bn won (around $3.7m) in six pilot projects. They include demonstration projects by government ministries overseeing agriculture, customs, elections, foreign affairs, livestock and maritime affairs. For example, the customs office has used blockchain to speed up the processing of an average of 36,000 personal clearance cases per day. Min said that KISA expects to highlight the results of current pilot projects in November.
Millennium Blockchain closes on $3m in funding for game-based Robot Cache
Millennium Blockchain, an international holding company, announced on 5 September that it had closed on a $3m investment in Robot Cache, a decentralised platform for distributing video games. According to Millennium Blockchain founder and CEO Brandon Romanek, the investment “marks a major strategic step for our company”. He said it completes the company’s goal of investing in some of the fastest-growing marketplace sectors, which include healthcare, renewable energy and video gaming. Future investments will be aimed at other blockchain-based ventures in agriculture, artificial intelligence, education, financial services, precious metals, real estate, storage and travel, Romanek said. Robot Cache describes its platform as “the world’s first blockchain-based digital marketplace for videogames”. When it launches, it plans to support part of such transactions using its own digital currency, IRON. Currently, gamers can resell physical copies of video games, but not digital versions. According to Robot Cache, its blockchain-based system will also “reduce the fees publishers and developers pay by 80 per cent”.
Singapore VC firm spins out $10m blockchain fund
Reuters reported on 9 August that the VC firm Golden Gate Ventures planned to launch LuneX Ventures, a $10m investment fund focused on early-stage blockchain and cryptocurrency companies. Based in Singapore, Golden Gate Ventures has invested in more than 30 companies across southeast Asia since 2011. It targets technology-based, disruptive startups in the areas of business-to-business, internet of things and software-as-a-service, among others. “The fund is among a cluster of similar ventures that invest in the cryptocurrency space, backed by wealthy individuals and financial firms, that have emerged over the past year,” Reuters reported. “Such firms have partially replaced the retail investor base, which drove bitcoin’s skyrocket rise in 2017.” On its LinkedIn page, LuneX Ventures is described as a Golden Gate Ventures “spin-out” with “a global mandate to invest exclusively in high-growth blockchain companies and cryptocurrency assets”. It added that LuneX was founded by Kenrick Drijkoningen, Golden Gate’s former head of growth.
Bittrex acquires 10 per cent stake in Malta startup Palladium
The cryptocurrency exchange Bittrex has acquired a 10 per cent stake in a Malta-based blockchain startup called Palladium, according to a report in the Times of Malta on 2 September. Palladium says it is offering the “world’s first initial convertible coin offering (ICCO)”, which will provide investors with “direct participation in company growth”. Bittrex reported in July that Palladium’s tokenised convertible warrant “will give investors the right to convert the tokens into shares of Palladium three years after the issue date”. Speaking at the July launch event, Bittrex CEO Bill Shihara said: “We’re committed to advancing blockchain technology and identifying projects that highlight its potential benefits.” He added: “We’re excited that this project will help further increase adoption of blockchain technology and continue to expand our business globally.” According to the Times of Malta, Palladium’s shareholders are Investar Holding, which owns 85 per cent of the company, and Unikrn (15 per cent). Palladium founder and chairman Paolo Catalfamo owns Investar. Unikrn was founded by Rahul Scood, former CEO of Microsoft Ventures.
Art platform raises $1.7m through Dutch auction of Warhol work
Maecenas, a blockchain-based platform for the fine art market, recently sold its first piece via smart contract: Andy Warhol’s 14 Small Electric Chairs. The artwork was tokenised, with a 31.5 per cent stake sold to a total of 100 bidders for $1.7m during a Dutch auction process. Using Maecenas’s platform, owners can raise funds by selling up to a 49 per cent stake in their artwork. The process enables them to retain control of a majority stake and stay in control of the artwork after the auction. In the meantime, smaller-stake owners can freely trade their shares in the artwork. And if the majority owner leases an artwork to a museum or gallery, the remaining investors can collect dividends based on the proceeds earned. Investors in the Warhol artwork included crypto enthusiasts and fine-art professionals, most of whom were from Europe and Asia. The auction was conducted with the help of a London-based art gallery, Dadiani Syndicate. “This is a historical moment, for us and for the blockchain community,” Maecenas CEO Marcelo García Casil said in a press announcement. “We have achieved a significant milestone that marks the beginning of a new era. Tokenisation of assets is the most prominent and exciting use case of blockchain technology, and we’re proud to be pioneers in this space. This Warhol painting is the first of many more to come and we are looking forward to seeing and leading the financial revolution for the art market.”
