How did this Hong Kong Crypto Exchange Hit Unicorn Status?

10 months ago 4

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The latest funding round results have propelled Hong Kong-based cryptocurrency exchange Hashdex, one of just two exchanges approved by local regulators, to claim unicorn status—a label reserved for startup companies achieving a valuation exceeding $1 billion.

Despite being the third-largest year for crypto venture capital funding, 2023 witnessed a substantial decline compared to the previous year.

HashKey Achieves Unicorn Status with Unknown Investors

A recent report indicates that both existing and new investors contributed to around $100 million in HashKey’s latest funding round. However, the precise source of these funds remains anonymous. HashKey’s valuation has now surpassed the $1.2 billion mark, securing its unicorn status.

Insiders disclosed that OKX Ventures, the investment arm of the crypto exchange OKX, played a key role as lead investors in the round. However, neither the exchange nor HashKey itself has publicly confirmed this information.

It comes at a time when crypto funding within the industry has been volatile over the past twelve months. However, in August 2023, it seemed to be a turning point.

BeInCrypto reported in August 2023 that venture capital funding in the crypto industry surged significantly compared to the previous month, July, suggesting a potential market turnaround.

Crypto venture funding totaled $660 million in August. According to the report, this was a 20% increase over the figure for July, which was $550 million.

In a recent report, Galaxy Research highlighted that 2023 marked the third-largest year for crypto venture capital funding. However, it experienced a substantial decrease from the preceding year, 2022.

HashKey Has Always Pursued Unicorn Status

It was always a goal in mind for HashKey to reach the billion dollar valuation in the near future.

The development was emerging when Hong Kong was in the planning stages of regulating crypto companies under a new licensing rule, which came into effect mid-2023.

Meanwhile, around the same time, BeInCrypto reported that HashKey was in the early stages of discussions of raising $100-200 million in funding at $1 billion dollar valuation.

Just a few months later, it was announced that HashKey became the first crypto exchange to offer retail trading to customers in Hong Kong.

This came amid Hong Kong’s financial chief, Paul Chan declaring “now is the best time to invest in Web3.”

Furthermore, In June 2023, Hong Kong’s Legislative Council member Johnny Ng urged Coinbase and other global virtual asset trading operators to apply for a license of operation in the region.

The lawmaker promised to “provide any assistance” to help these firms’ applications.