HashKey Capital 2022 Review: Surviving the Winter, Anticipating a Warm Spring

2022 is our 7th year focusing on blockchain and cryptocurrency investments. Currently, our assets under management have exceeded 1 billion USD.

In the past year, we have continuously deepened our global layout, covering the entire ecosystem of blockchain and cryptocurrency. We focus on areas such as infrastructure, protocols, data layers, Web3, while also expanding into fields like data security, custody, DID, NFT, metaverse, GameFi, and applications, integrating them in a cross-dimensional manner.

Vertical:

• Deeply cultivate the technology community, promptly capture new trends and technological directions.
• Invest driven by research, deeply explore vertical tracks such as ZK, cross-chain, MPC, data, games, etc.

Horizontal:

• Establish deep cooperation with major public chain foundations through hackathons, ecological funds, and other means.
• Work closely with global industry institutions to share quality projects
• Leverage a network of over 300 invested companies to comprehensively cover high-quality projects.

Major Achievements in 2022

• 68 projects completed the first round of financing, and 93 invested companies received follow-up financing.
• Successfully completed nearly $500 million in Phase III fund raising
• Hong Kong License No. 9 upgrade, Singapore CMS license principle approved.
• Selected for multiple industry heavyweight lists
• Participate in and host multiple top industry events to enhance influence.

Management Team's Perspective

Deng Chao ( HashKey Group Singapore Head, HashKey Capital CEO ):

We are committed to being a trusted partner for institutional and professional investors, helping them seize the high-growth opportunities in the blockchain and digital asset industry.

Over the past five years, we have experienced disruptive technological innovations in the industry and have developed the ability to respond to market fluctuations. We have consistently emphasized that regulatory compliance, risk management, and information transparency are key to the institutional-level application of digital assets.

Some events that occurred in the second half of 2022 were frustrating and highlighted the lack of compliance awareness among some participants in the industry. As a regulated asset management company, we always adhere to strict management systems and compliance processes.

Looking ahead to 2023, we remain confident. We will continue to invest responsibly, supporting the growth of our portfolio companies through comprehensive assistance, while increasing our investments in emerging markets and deepening our connections with the developer community.

James Boettcher(HashKey Capital Senior Advisor):

Although there were some dishonest behaviors in the industry in 2022, this does not affect the fundamental advantages of blockchain technology. In the long run, strengthened regulation will actually benefit the large-scale application of the industry.

We are seeing substantial progress in areas such as open finance and Web3. More and more mainstream companies are beginning to apply blockchain technologies like NFTs. Although still in the early stages, Web3 and blockchain are reshaping many industries and will create huge investment opportunities.

Arron Liu(HashKey Capital Senior Advisor):

The development of blockchain and Web3 is similar to that of past emerging technologies, going through phases of enthusiasm, hype, and eventual realization. The current situation may be different due to prolonged low interest rates, but the speed of technological advancement has outpaced the ability of regulatory assessment and control, which is reminiscent of the early development of financial innovations such as derivatives.

The key is whether "the results can prove the legitimacy of the means." Regulators need to maintain balance and strengthen oversight governance without stifling innovation.

Yong Hak Huh(HashKey Capital Senior Consultant):

The series of bankruptcies that occurred in 2022 accelerated the arrival of the "crypto winter," but we have experienced cycles and understand that spring will eventually come. In the long run, these events may benefit the industry's development, as regulation and financial security will become the themes of the future.

The cryptocurrency industry needs to make efforts in regulatory compliance, credit systems, long-term vision, and operational transparency to gain the trust of institutional investors. Only then can crypto assets become an important part of institutional portfolios.

Through the cold winter, spring is still worth looking forward to.