U.S. exchanges are becoming hotspots for Asian funds to be invested into crypto. This wasn’t heard of before, but that doesn’t mean it didn’t happen. The amount of Asian funds is only becoming more and more prominent as blockchain technology gains more notoriety. Funds with Asian money, primarily from China, have been in Silicon Valley for a long time. But they did not get enough recognition in the past.
The amount of money coming in from the Asian market is growing quite a bit. In venture financing, Asia is just behind the American countries by 4%. Additionally, US funders are also only now realising the potential that Asian companies have. More and more VCs are looking to invest in the Asian market alongside the American market. A recent study showed that China had 32 more unicorns that the USA, which is reported to have 132. Companies such as Meituan Dianping (the Yelp equivalent of China) and Didi & Ola (the Uber equivalent of China & India) are giving their US competitors a very tough fight. Many of these companies have been valued at billions of dollars. The Asian market has been vastly underrated.
Asian Funds accelerate West-East investment ties
But why this sudden shift? You can thank cryptocurrencies and blockchain for that. Investing in foreign markets used to be extremely complicated before. But blockchain and cryptocurrencies have made the process much easier. Additionally, the decentralization of the platforms also helps. For example, China is known to be very aggressive against other countries but with the help of blockchain, it can all be anonymous and decentralized. Chinese companies mine a staggering 80% of the world’s cryptocurrencies. And Asia as a whole now makes up a huge chunk of the total crypto trades in the world.
The cryptocurrency phenomenon began in Asia and the U.S. around the same time. But Asia got a head start due to a favorable set of regulations compared to the U.S. While the U.S. wasn’t very swift to adopt cryptocurrencies, countries like China, Japan, and Korea have supported them from the start. Even the Chinese president stated that blockchain as a technology holds a lot of potential. He even went as far as calling the technology a breakthrough. Japan has been a supported right from the start. And Korea plants to use blockchain as a part of their democratic process. Asian countries might be the world’s first in adopting systems such as democratic voting and blockchain based power grids for example.
Looks like Asian nations might soon surpass the United States. The U.S. better catch up.