Singapore-based cryptocurrency venture capital firm, Mooncake Capital has announced that its Connect Fund launched to raise funds in the form of cryptocurrency, has collected $10M till date.
Mooncake Capital invests in blockchain projects. It operates two funds: a Crypto Fund and a Connect Fund. Till now, Mooncake has invested funds from the crypto fund in Ethereum, Ripple, and Binance among others. It has a strong presence in China, Hong Kong, and Singapore and gets first pick on in these places.
Mooncake launched the Connect Fund to raise $100M, for further investment in cryptocurrency projects in Asian countries, namely China, Singapore, and Hong Kong. Mooncake strategy is to raise funds from outside the main Asian crypto hubs, such as Europe, Latin America, etc. and invest them in these three economies.
Investments in Connect Fund can only be made in cryptocurrencies. The company has said it can provide OTC trading facility too. OTC is also helpful in overcoming China’s ban on cryptocurrencies. The exchanges through which OTC is carried out like Huobi OTC are listed in other countries where cryptocurrencies are not banned, like Singapore, but their staff is working in China.
Mooncake Capital partner Patrick Lee says that the fund sees “large OTC volumes in Indonesia, about $1M to $2M every day.”
He also said that a majority of the investors from Indonesia wanted to invest in Chinese projects.
Thus, Mooncake Capital is purely going to use its reserves from Connect Fund to supplement its investments in the crypto fund. It will provide a gateway for foreigners to invest in cryptocurrency projects and companies in China. It is not going to use the Connect Fund to expand in other countries but will invest its reserves in areas of its expertise in markets where it has a lot of prestige. That will reduce risks for foreign investors.