The Big Dipper in the Crypto World: A Brief Analysis of the Layout of a16z, Sequoia Capital and Three Arrows Capital

Looking back on the last round of the bull market, the entire industry was shouting for it, and each track was full of flowers. As more and more institutional investors turn their attention from traditional finance to crypto finance and from gold to bitcoin, institutional adoption of cryptocurrencies has also begun to accelerate, and the total market capitalization of the crypto industry has risen sharply. At the beginning of 2020, the total market value of the crypto asset industry was only $193 billion, and then, with the massive entry of institutional investors, the market value of the entire crypto market hit a maximum of $3.01 trillion.

Before institutional investors began to rush to enter the crypto market, some investment institutions had already been ambushed in the crypto field and started their own strategic layout. These investment institutions have gradually become the signal lights of the crypto market, including a16z, which has created a myth in the investment circle, and Sequoia Capital, which has just announced the establishment of a $600 million crypto fund, and has been focusing on blockchain since 2017. Three Arrows Capital in technology investing and crypto.

how the wind blows

In the past few years, whenever crypto assets began to change and prices began to fluctuate, some financial market commentators would wantonly promote the crypto bubble theory, but such remarks have gradually diminished in the institutional entry fever that started in 2018.

Once upon a time, JP Morgan CEO Jamie Dimon was seriously skeptical about crypto assets, but with a deeper understanding of the crypto market, Jamie said in an interview with Fox that he has expressed concern about describing Bitcoin as a fraud. Regret, and admit that "blockchain is real". As the use cases of blockchain become more common, institutional investment opportunities in the cryptocurrency market have also begun to increase significantly, and many of the same characteristics and guarantees as the traditional investment market are also increasingly appearing in the crypto market.

Driven by constant market demand, institutional investors trading cryptocurrencies have enjoyed success in 2018, with some big names flocking in and trying to take their place. The increased interest from large institutional investors, while supporting digital assets, has also distorted the market, leaving the development of the crypto industry in the hands of these large institutional investors.

After entering 2020, the institutional admission has entered a period of high enthusiasm. Previously, investors were hesitant to enter the crypto market due to high volatility and lack of regulation, and gradually, large players have gradually begun to occupy a prominent position in the crypto space. Then, under the leadership of Wall Street institutions, various venture capital institutions began to infiltrate the encryption field and invest in some promising and innovative encryption projects. It is understood that there will be a large inflow of crypto asset funds in 2021, reaching US$9.3 billion, and the number of investment and financing in the first half of the year alone has exceeded that of the whole of 2020.