March 14, 2018

Feng Chi From Genesis Capital: China’s Blockchain Industry to Face Turning Point and Undergo Differentiation

SEOUL, South Korea–(BUSINESS WIRE)–At the 2018 TOKENSKY Blockchain Conference Seoul Session, which was held
on March 14-15, 2018, Feng Chi, CEO of Genesis Capital, delivered a
speech to note that China’s blockchain industry is now at a turning
point switching from the first half of the brave game to the second half
that will go on with new rules.

After blockchain projects spurted in 2017, the Chinese market has become
the whirlwind eye attracting venture capital. The mainstream VC
organizations, although taking a seemingly wait-and-see attitude, have
been creeping in the battle one after another. As more and more talents
and capital flow in, China’s blockchain market will enter a competitive

For investors, this transformation bears high likeness to that of the
equity investment market. Back in 1992, there were only 4 venture
capital companies in the Chinese market. But within the next 10 years,
the number soared to 500, and further to 12,000 by 2013. This
corresponds to Kurzweil’s “Theory of Singularities”, i.e., technology
development is in power-law distribution, slow at the preliminary stage,
and faster till a spurt. Feng Chi noted that China’s blockchain
investment market will be likewise.

In a fully competitive market, it is critical to find out the
differentiation. At the early stage, there is the sellers’ market,
meaning that investment is sure to bring profits because projects will
keep coming in. In contrast, in the second half of the game, investors
will need to identify their position. In this regard, Feng Chi proposed
Genesis Capital’s 3 iron laws as follows.

First, professionalism. The boss not only needs to see the good racing
track, but also needs to know good racing technologies and talents. At
this point, it is quite clear to investors where the blockchain is
heading for. Therefore, apart from technology and feasibility, the most
important thing is to find professionals.

Second, branding. Investors in the past tended to attract projects with
their personal resources and reputation. But in the highly unpredictable
blockchain market, the mobility of individuals is too high to control. A
fund with a long-term vision should operate the brand as an organization
and establish brand reputation in the industry.

Last but not least, compliance. The blockchain industry is still in its
infancy with many unstable factors, among which the national policy can
be the biggest uncertainty. The right way to advance the industry is to
embrace the policy and be friends with the watchdogs.

At last of the speech, Feng Chi expressed his interests in the Korean
market and revealed that several cooperation projects will be launched
in 2018.

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