Huobi Ventures Weekly Insights
Insight provided by Evans HuangFu of Huobi Ventures
NFT Liquidity & Right Management
As the name suggests, non-Fungible tokens (NFTs) are unique digital assets. We have witnessed a craze of “NFT Summer” with a monthly trading volume of $3.16 billion on OpenSea in August 2021.
NFT offers digital artists an alternative way to make a living. Before the explosion of blockchain technology, digital art might not capture much value because of the ease of duplication. By making digital items scarce, more collectors are taking an interest in the digital space, driving up the value of NFT. The problem, however, is that the unique nature (non-fungible, non-divisible) of each NFTs makes them hard to exchange with other assets, and therefore hard to be priced. As a result, the surge in demand over a short period leads to a shot up in price of NFT collectibles.
Therefore, NFT, as a competitive/charming asset, still has some Unavoidable flaws:
• The lack of liquidity results in high slippage
• Hard to be used as a good collateral since it lacks transaction activities
• Significant capital expenditure is required to have a chance of getting a high-end/popular NFT
Fractionalization seems to be a potential solution to the problems mentioned above. NFT fractionalization protocols are creating fungible and divisible tokens to liquidize a single NFT. However, it is still hard to define what is the difference between holding 1% fractions and holding 30% fractions. On the other hand, fractionalized arts could be considered as a security token, thus it will be regulated by SEC. NFT space is still at a very early stage, and the regulatory pressure would mount on existing fractionalization protocols as it becomes more mature.
Huobi Ventures Latest Update
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Portfolios Weekly Status
Acala recap of September. Details
Astar Network announced $30M Astar/Shiden Ecosystem Growth Fund and announced Astar v2.0. Details
Hex Trust has raised US$10 million in an investment round led by Animoca Brands. Details
AntiMatter integrating with SushiSwap on arbitrum on Oct. 8th. Details
Biconomy will have a token sale on CoinList on Oct 14. Details
Clearpool will hold AMA for Korea Community. Details
CoFiX v2.1 has suspend trading, the recovery plan will be determined according to the policy. Details
Cyclos has achieved strategic partnership with Slope Wallet. Details
Genesis Non-Fungible DIVERs have arrive. Details
· Dune Analytics has integrated InsurAce.io onto its platform. Details
· InsurAce is to be deployed on Avalanche. Details
· InsurAce has latest partnership with Liquity Protocol. Details
Linear council election process published. Details
Larix is live on Mercurial. Details
A new research paper co-authored by Dawn Song, Bennet Yee with Patrick McCorry & Chris Buckland will be presented at Consensus Days 2021. Details
OpenOcean hits spooky waters with Fantom aggregation. Details
Optimism will give away $1 million to Ethereum public goods for their amazing contributions to the community. Details
Audit preview for PoolTogether V4 is live. Details
Taking one step to BSC Integration this week kicks off our first #Multichain gaming ecosystem. Details
Torum (XTM) in now on Binance Smart Chain. Details
Vee.Finance V2 mainnet will launch on Avalanche. Details
1/ Add statistics function on project details page.
2/ Add filter sorting search in project details page.
3/ Collection list support quick purchase and bid function. Details
About Huobi Ventures
Led by Huobi CFO Lily Zhang, Huobi Ventures is a wholly-owned subsidiary of Huobi Group focusing on Huobi global investment. Composed of four divisions — strategic M&A, strategic investment, asset management and global cooperation, Huobi Ventures has already launched three funds targeting typical fields: Blockchain, HECO and NFT. We aim to empower further growth of Huobi Global, and create a global community with our partners for mutual benefits.