Joyce Kim, co-founder of SparkChain Capital’s $ 3.5 billion Blockchain network Stellar and hedge fund partner, said in an interview that 99 percent of Blockchain investors are only interested in short-term profits. The technology interests the fewest investors.
Solid projects prevail and this is reflected in the price. Instead of investing in persuasive projects and teams over the long term, however, ICOs that can make short-term gains are preferred. Kim is convinced that this focus needs to change. Investors need to focus on true value, technology. Just five years ago, investors were particularly interested in technology, today most investors only have three to six months and then exit.
“Five years ago, Blockchain industry was more interested in technology than in profits. Meanwhile, however, 99 percent of the investors working in [this area] are only there for the money. [This] could cause the development of Blockchain to be destroyed. “
In addition, capital increases the pressure on companies to deliver a (unfinished) project. Developers and projects can not or only poorly meet deadlines and deadlines and still have to present something, which in the long run causes everything to implode. Also Vitalik Buterin knows this pressure. The founder of the Ethereum platform said he was curious to live up to expectations.
Blockchain industry needs investors and partner companies who understand the complexity and difficulties of decentralized applications rather than those that demand short-term results and returns. For example, VeChain, a China-based IoT (Internet of Things) Blockchain platform, partnered with multi-billion dollar logistics giant DB Schenker and it was agreed that distributed applications would be developed.
Kim, who will soon be managing a $ 100 million fund, is also looking for potential partners who share SparkChain’s vision. In the medium to long term, the focus will be on financing Blockchain startups and projects that work on applications such as databases, platforms and supply chains – especially in agriculture.
And Kim does not focus on short-term profits, but rather on increasing a startup’s profit margin. This would allow investors and the founders to earn more money and, at the same time, further develop the technology. So a startup in the Congo could bypass the middleman with the blockchain and thereby achieve more revenue.
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