By Joe Pan
Market narratives are everything in crypto. Few if any industries care more about market narratives than the underlying forces that can make or break a project’s fortune in this volatile space. As we head into 2024, diverging East-West narratives are emerging that could significantly shape the opportunities and flow of capital across the crypto markets. At the recent Southeast Asia Blockchain Week (SEABW) panel in Bangkok, top experts from venture capital, trading, advisory, and infrastructure providers gathered to unfold these contrasting perspectives between the established Western players and the rising crypto forces in Asia.
Unfolding narratives and market opportunities forking between the East and West on the stage (L-R) are Steve Lee (Neoclassic Capital), Ryan Kim (Hashed), Casper Johansen (Spartan Group), Darryl Wang (Tangent), and Cynthia Wu (Matrixport).
While the West enjoys greater available capital, Asia boasts a larger user base – making an understanding of both markets key. Panelists saw Bitcoin ETFs as a driving force for mainstream capital influx, with layer 2 Bitcoin solutions potentially capturing more value than Ethereum. The intersection of AI and blockchain shows promise but remains at an early stage, hampered by computing power and data challenges. As tradfi and crypto converge through regulated offerings like ETFs, tokenization of real-world assets is viewed as blockchain’s next phase for financial infrastructure. Narratives differ geographically, with Solana driven by Western interests and Polkadot by the East. U.S. investors take a long-term infrastructure approach, while Asians display a shorter-term, opportunistic stance – though U.S. VC backing lends credibility in Asia. Compliance looms large for crypto firms seeking global expansion and tradfi capital access.
“There’s a lot more capital available in the West, just in general with the traditional markets and in crypto. And there’s a lot more in Web 3, a lot more users in Asia. Whether projects are based in North America or Europe, we really like to have quality Asian VCs or advisors involved because they need that kind of market access and market understanding. Capital is super important…but if you can get investors involved that really understand the markets, help give access, help make the right choices, avoid mistakes, [that’s] very valuable.”
–Casper Johansen (Spartan Group)
“There’s a strong wall between East and West capital. The Solana frenzy this cycle is predominantly Western-driven, while the BRC inscriptions hype is driven by Chinese and East capital. Different geographies prefer different narratives – for instance, Westerners back projects like Stacks for specific use cases that differ from what resonates in Asia.”
— Darryl Wang (Tangent)
“The narrative we see now is the convergence of tradfi and the crypto native world. Blockchain is the next-gen financial infrastructure where we’ll be trading the latest $3 trillion+ in real assets on-chain.”
–Cynthia Wu, COO, Matrixport
Key Takeaways
- There is a lot of capital available in the West, while there are more crypto users in Asia. Understanding both markets is key.
- Bitcoin ETFs will bring more mainstream capital into crypto. Layer 2 solutions on Bitcoin will capture more value than on Ethereum.
- AI and blockchain have potential, but still early and unproven. Computing power and data are key challenges.
- Convergence of tradfi and crypto through regulated offerings like ETFs. Tokenization of real world assets is the next phase of blockchain as financial infrastructure.
- East vs West capital flows differ based on narratives. Solana driven by West, Polkadot by East.
- US investors take a long term infrastructure view. Asian investors are shorter term and opportunistic. Credibility comes from US VC backing.
- Compliance is critical for crypto companies expanding globally and accessing tradfi capital.
Macro environment
- Bitcoin ETFs will bring mainstream capital to crypto. Bitcoin layer 2 solutions will capture more value than Ethereum.
- AI/blockchain intersection is early but has potential for content generation and data efficiency. Computing power and data are key challenges currently.
- Convergence of tradfi and crypto happening through ETFs and tokenization of real assets on blockchain.
Regional differences
- More capital in West, more users in Asia. Western projects need Asian partners for market access.
- East/West capital flows differ based on narratives. Solana driven by West, Polkadot by East.
- US investors take long term, infrastructure view. Asians are shorter term and opportunistic. US VC backing brings credibility in Asia.
- Panelists and Company overviews
Steve Lee, Co-Founder & Managing Partner, Neoclassic Capital
Steve Lee is a co-founder and managing partner at Neoclassic Capital, an early-stage venture capital firm investing in web3 and digital asset across consumer and financial services sectors.
Until late 2022, Steve worked at BlockTower Capital, a global digital asset investment firm based in New York and Miami, founded by a former Goldman Sachs VP and UChicago endowment portfolio manager, and backed by a16z and USV.
Before joining BlockTower in 2018, Steve spent 8 years with Goldman Sachs in Tokyo and Singapore in the firm’s asset management division (GSAM), where he served as a portfolio manager, trader, and analyst for Asian institutional clients.
Cynthia Wu, COO, Matrixport
As COO, Cynthia leads investor relations and oversees global business strategies at Matrixport. Previously Investment Director at Bitmain Technologies, Cynthia focused on investments in blockchain technology and decentralized applications.
Prior to venturing into crypto, Cynthia was Vice President at Hong Kong Exchange (HKEX), responsible for derivatives product development and institutional sales. She started her career in HK as a commodities trader.
Ryan Kim, Co-founder & Partner, Hashed
Ryan is a General Partner at Hashed. Hashed is a leading global crypto VC , a leading global crypto VC fund and a team of blockchain experts and builders based in Seoul, Singapore, Bengaluru, and Silicon Valley. Hashed has invested in projects such as Aptos, NEAR, Axie Infinity, The Sandbox, Yuga Labs and Dune. Ryan assesses deals from Asia and focuses on applications, corporate finance and enterprise. Previously, Ryan successfully exited his company LOOKET, a mobile solution for SME to Recobell (a Big Data company).
Ryan was in charge of the development and planning of recommendation systems in his previous company, and he realized that the data space has many vulnerabilities. This led him to blockchain and ultimately made him co-found Hashed. Ryan graduated with a bachelor’s degree in Electronic Engineering from the Korea Advanced Institute of Science & Technology.
Casper Johansen, Co-Founder of Spartan Group and Co-Head of Spartan’s Advisory business.
Spartan advises leading crypto-focused companies on M&A and fundraising, with past clients including Solana, Dapper Labs, Blockfolio, Bybit/BitDAO, GoJek, Deribit and Blockstack. Spartan’s crypto asset management business manages >$350 million via its hedge funds and venture funds. Based in Asia since 2004, Casper has worked as an investment banker, tech entrepreneur, corporate executive and private equity investor. Prior to co-founding Spartan in 2017, Casper spent 10 years in the Investment Banking Division at Goldman Sachs in their London, Hong Kong, Beijing and Singapore offices, where he led and worked on more than $20 billion of M&A and capital markets transactions.
Darryl is the co-founder of Tangent, a proprietary fund committed to crypto investing. He currently helms Tangent’s liquid trading strategies and is an active angel investor.
About the author
Joe Pan is editor and producer of NFTMetta.com
