Crypto exchange operator Huobi launches $100 mln venture unit for bolt-on deals and NFTs (updated)

Bitfire group

13/05/2021 12:28

(Adds Animoca Brands fund raising in final paragraph)
    HONG KONG, May 13 (Reuters) - Cryptocurrency exchange
operator Huobi Group has launched an investment arm with $100
million to spend, setting aside some cash specifically for
non-fungible tokens, the latest hot trend, the company said on
Thursday.
    The recent surge in prices for bitcoin and other
cryptocurrencies has fuelled a global rush of fundraising by
companies in the sector, with both traditional venture capital
firms and cryptocurrency incumbents competing to snap up the
best companies.  urn:newsml:reuters.com:*:nL4N2L60YS  urn:newsml:reuters.com:*:nL4N2MN4NN 
    The new unit is the latest move by Huobi, parent company of
one of the world's largest exchanges for trading
cryptocurrencies, to diversify its operations away from trading,
after a separate unit, Huobi Tech  1611.HK , launched
crypto-related funds for institutional investors last month. 
    The fund plans to acquire blockchain companies that can be
integrated into Huobi's existing businesses, making early stage
venture capital investments. It includes $10 million
specifically for investing in NFTs and marketplaces that trade
them. 
    NFTs, virtual assets that exist on a blockchain ledger, have
exploded in popularity this year. This week, Ebay  EBAY.O  said
it would allow the sale of NFTs on its platform.  urn:newsml:reuters.com:*:nL4N2MV08Z 
    "What we see in the market today is only a fraction of
what’s actually possible with NFTs," said Huobi Group CFO Lily
Zhang, who will head up the new Huobi Ventures unit. 
    The fundraising boom is already starting to extend to NFT
companies.  In a separate announcement on Thursday, Hong Kong
based Animoca Brands, a gaming company which provides NFTs
associated to items within its titles, said it had raised $88.89
million at a valuation of $1 billion. 

 (Reporting by Alun John; Editing by Lincoln Feast and
Bernadette Baum)