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Welcome to Chain Venturer, a series of intriguing conversations with crypto investors. This week, we have 0xMinion of GBV Capital.

GBV Capital is a crypto VC firm with portfolio including companies such as Pyth, Pendle, Trader Joe, and Zeta.

Before joining GBV as a researcher and investor, Minion served as Head of Research at Huobi Global, focusing on Huobi DeFi Labs and Huobi Ventures from 2020 to 2021. 

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Anyway, enjoy this week’s conversation.

Imagine fading $10B flow

0xMinion of GBV Capital

Minion works in Research & Data at GBV Capital, a venture capital dedicated to the investment, development, and the creation of blockchain projects. 

GBV's portfolio boasts investments in companies such as Pyth, Pendle, Trader Joe, and Zeta. Recently, GBV announced its investment in Orbit Protocol, a DeFi lending protocol built natively on Blast.

Minion began his crypto career at Huobi Australia as a Market Analyst in 2018. By 2019, he was a Senior Analyst at TokenInsight Inc. and became their Head of Research in 2020. 

Before joining GBV, Minion served as Head of Research at Huobi Global, focusing on Huobi DeFi Labs and Huobi Ventures from 2020 to 2021. 

Here’s my conversation with Minion. 

Quick takeaways:

• GBV operates like a DAO entity. It functions without external LPs, focusing on collaborative research and investment, utilizing its own capital to support and add value to projects.

• GBV focuses on grassroots, community-driven projects, preferring early-stage investments in pre-seed, seed, and private rounds.

• Bullish on crypto games that can use blockchain to create autonomous worlds and strategic gameplay that includes real economic systems.

• To truly grasp the Chinese and Korean crypto markets, one really need to visit and directly interact with the founders community in the region.

• Many projects misuse point systems as a substitute for tokens, often without clear timelines or token plans, aiming to bootstrap user activity and secure funding, a strategy that overlooks genuine market interest and sustainable growth.

What was the defining moment that drew you into the world of crypto?

Minion's foray into the crypto world began intriguingly during his postgraduate degree when a research assignment on blockchain and its potential to revolutionize financial services piqued his curiosity. 

The defining moment: That academic endeavour led him to discover Ripple, followed by Ethereum and Bitcoin, marking the start of his deep dive into the technicalities and innovations within the crypto space. His interest soon evolved into a passion, guiding him to explore various facets of cryptocurrency, from mining Bitcoin to analyzing Ethereum's financial models. 

By 2018, he had fully embarked on his professional path in the crypto industry, joining Huobi Australia to focus on research, operations, and customer service.

What is GBV?

GBV began its journey between 2017 and 2018, originally operating as a leading OTC service provider in Hong Kong, facilitating fiat on-ramp and off-ramp.

During the 2017 cycle, GBV engaged in arbitrage strategies across Korea, China, and Hong Kong. Evolving beyond its initial scope, GBV ventured into the investment realm by late 2020.

GBV operates like a DAO entity. It functions without external LPs, focusing on collaborative research and investment, utilizing its own capital to support and add value to projects.

With a specialized team of 10, GBV leverages its expertise across different sectors, including DeFi and the exchange landscape, establishing a niche in adding value to protocols through strategic connections and services.

What kind of builders should be reaching out to you and what sectors are you currently looking at? 

Minion says that GBV focuses on grassroots, community-driven projects, preferring early-stage investments in pre-seed, seed, and private rounds, with funding amounts ranging from $5M to $40M in the primary market.

GBV's primary market focus is on supporting builders with a strong community base and potential for significant growth, indicating a preference for projects that start small but show promise for substantial development.

What are your current thoughts on the crypto gaming sector and are there any games that you like? 

Minion's perspective on the GameFi sector emphasizes the importance of innovation and blockchain-native functionalities within gaming.

He is less interested in mainstream AAA titles (in terms of the crypto gaming sector), despite being a gamer himself, and more captivated by games that are truly unique to the blockchain, offering something that cannot be found in traditional gaming ecosystems. 

His focus is on games that can harness the full potential of blockchain technology to create autonomous worlds and strategic gameplay that includes real economic systems. These games would allow for direct player engagement in asset trading and market dynamics, mirroring real-world financial systems. 

Minion believes in leveraging blockchain to transform gaming into a more immersive and economically meaningful experience, where games serve not just as entertainment but as platforms for innovation, speculation, and real value exchange. 

This approach aims to attract a diverse set of market participants, expanding beyond gamers to include traders and speculators, thereby enriching the gaming experience and fostering a more robust and dynamic gaming ecosystem on the blockchain.

What sectors or projects are you most excited about?

Minion highlights his enthusiasm for AI integration with crypto for its potential to redefine technological boundaries.

Apart from AIxCrypto, Minion highlights 3 sectors/projects within the crypto space that caught his eye:

• Berachain for its innovative approach to sustainable liquidity driven by DeFi veterans. 

• On-chain gaming for pioneering a new asset class that doesn't exist in traditional gaming or previous crypto cycles. 

• Monad is noted for its exceptional community engagement and use of memes

Berachain, in particular, aims to resolve liquidity sustainability issues by introducing protocol-owned liquidity, ensuring that assets remain liquid even during market downturns. This approach could revolutionize how projects maintain liquidity and survive through different market conditions. 

On-chain gaming is commended for its fresh take on gaming, offering unique, blockchain-based gameplay experiences. 

Additionally, Monad is noted for its exceptional community engagement and use of memes, highlighting the importance of community in the crypto ecosystem. 

What do you think is the best way for non-Mandarin speakers to get the crypto information flow from the China crypto scene?

Minion believes there's a significant information gap between the crypto scenes in China and the West.

To bridge this, he suggests two approaches:

• Visiting the Greater China or Asia region to engage with local founders and communities directly.

• Following bilingual influencers who understand both cultures and can translate or explain nuances. 

He emphasizes that truly grasping a foreign market requires immersion in its culture and language, a challenge comparable to his own experiences with the Korean market, underscoring the value of local insights and direct interaction.

What is your opinion on the future of CEXs in Hong Kong in light of friendlier regulations and increased compliance?

Minion noted the sensitivity around Hong Kong's regulatory environment.

He observes that the Hong Kong government aims to attract blockchain talent and encourage crypto innovation while navigating regulatory constraints. There's a notable effort to balance public protection with the support for fintech and crypto sectors. Exchanges in Hong Kong and Asia might operate offshore yet comply with certain regulations. Minion distinguishes between exchanges that align with US laws and those in a grey area, suggesting varied compliance strategies based on size and market influence.

Minion emphasizes Hong Kong's strategic push to become a hub for fintech and blockchain innovation. He observes that the Hong Kong government aims to attract blockchain talent and encourage crypto innovation while navigating regulatory constraints. There's a notable effort to balance public protection with the support for fintech and crypto sectors. Exchanges in Hong Kong and Asia might operate offshore yet comply with certain regulations

Minion observes that numerous exchanges claim to operate outside China, yet many of their teams are based there. Despite the Chinese government's strict regulations on crypto and blockchain activities, these exchanges find ways to navigate or exploit regulatory loopholes, allowing them to function somewhat within China. 

Rapid Fire Questions

1. What's one piece of content every aspiring investment professional should read/watch?

   • How to get rich without getting lucky - Naval

2. What’s your biggest investment mistake?

   • FOMO

3. What’s the most underrated use case of crypto?

   • NA

4. What’s your most contrarian view in crypto right now?

   • Bullish on the “autonomous world”, several VCs are very bearish on that.

5. What’s the biggest risk that the crypto space is facing?

   • Many projects misuse point systems as a substitute for tokens, often without clear timelines or token plans, aiming to bootstrap user activity and secure funding, a strategy that overlooks genuine market interest and sustainable growth.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.