Excerpts from Coindesk’s article by David Pan, image by Shutterstock
The White House recently directed a retirement savings fund to stop investing in Chinese companies, citing threats to national security. But these restrictions don’t necessarily pose a threat to crypto startups.
“A pension fund might find a hard time in allocating assets but it is a broad phenomenon that those funds do not invest in crypto regardless of the U.S.-China relations,” says Haseeb Qureshi, managing partner at Dragonfly Capital Partners, an Asia-focused crypto venture capital based in San Francisco.
Western crypto projects often appeal to Chinese investors.
“Historically, there are relatively more innovative crypto projects from the West in general and these projects would attract investment from the East where they tend to have more liquidity,” said Omer Ozden, CEO of RockTree Capital, an investment firm with a focus on blockchain technology in Asia.
“Chinese crypto investors are very enthusiastic and active, reflecting the FOMO (Fear of Missing Out ) phenomenon.”
But in China, political tensions occasionally bleed into the business sphere. If Chinese investors start favoring homegrown projects, that could spell trouble for U.S. crypto projects.