EOS Global and Crypto-fever in China

From the earlier engagements with Asia, EOS has gone through a series of meetups and conferences. But no single one is as game-changing as this one — aiming at accelerating Asia-focused EOSIO ecosystem development.

Block.one launched joint venture EOS Global in HK China and scheduled investment for projects

In April 6, Block.one, the developer behind the pioneering blockchain software EOSIO, announced a partnership with blockchain veterans Michael Cao (best known for being the CEO of ZoomHash and as a key contributor to other blockchain infrastructure projects around the world) and Winnie Liu that sees the formation of a new US$200 million joint venture fund, EOS Global.

EOS Global will make strategic investments in Asia-focused projects utilizing EOSIO, and is the fourth injection of capital through Block.one’s EOS VC initiative which now totals 600m USD.

The size of EOS is estimated to be 1/5 of the entire ICO in 2017

According to Business Insider, the entire ICO market last year raised 5.6 billion dollars in 2017. If we are being conservative, we can assume that Block.one is using it’s own billion dollar fund to match these VC’s dollar for dollar, and we can bring the estimated VC money being invested into EOS projects to be about 1.17 billion dollars. If VC’s money is any indication, EOS’s ICO economy is already the size of 1/5th of the entire crypto ICO market last year.

Michael Cao was cited as saying that the blockchain market is competitive, the speed, scalability and usability of the EOSIO open-source platform would boost rapid and radical innovation.

China does not want to miss out on any big technology trend

“As China invest big in artificial intelligence/machine learning since it is an obvious bet on the future and a relatively low hanging fruit,” said Spiros Margaris, a venture capitalist and adviser in the fintech industry, “They will want to control who can participate and more importantly who can control it.”

In China, local governments have established special blockchain funds to support local tech companies, univer, and research institutes working on building public and private blockchain networks. The People’s Bank of China is constantly improving the policy for blockchain and cryptocurrency in order to support the tech sector. Beijing is also cutting taxes on tech companies. This is clearly a sector of the economy China views as strategic.

China’s blockchain development will be landing in various fields soon, from data sourcing to the internet of things, and finance being all top priorities.

Cryptocurrency FEVER market in China

China’s crackdown on ICOs and cryptocurrency exchanges might lead those of us in the West to conclude that it isn’t the most “crypto-friendly” jurisdiction at the moment. But as with most Western opinions about China, such a conclusion is almost certainly an oversimplification and most likely wrong. China still has an enormous amount of influence on the global cryptocurrency marketplace, and it’s not a country that is known for voluntarily handing over its global influence.

One important difference is how traders in China view cryptocurrency from a philosophical perspective compared to their counterparts in the West. In China, it’s more about cryptocurrency being used as a commodity for trading, and much less about its potential of a long term new age decentralized currency.

With the censorship in China, the only way to access any exchanges was by using a VPN to connect to foreign exchanges. But for most expats, that’s something they are already familiar with, so it never presented much of an issue. Firing up a VPN is just part of the regular daily online routine for all the expats or even commoners.

And when it comes to mining that’s a completely different beast. Anyone getting into mining in China right now typically goes all in, spending enormous sums of money to buy as many of the latest bleeding edge hardware rigs they can afford. That’s to ensure they’ll have a quick return on their investment in case the Chinese government decides to shut them down.

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