Former Citigroup Exec Launches $1.5 Billion Cryptocurrency Fund

Former Citigroup Exec Launches $1.5 Billion Cryptocurrency Fund

Matt Zhang, a former executive at popular American multinational bank Citigroup, has announced the launch of a $1.5 billion fund that will be exclusively focussed on cryptocurrency-related investments.

According to a Bloomberg report today, the new startup dubbed Hivemind Capital Partners has attracted interest from notable institutional investors, as they hope to join the investment firm at its nascent stage.

Despite the rising institutional interests in Hivemind, Zhang, who worked for Citigroup for 14 years, said the company will be adding up to five partners between the next six to 12 months, the report added.

Hivemind to Invest in Four Crypto Sectors

Hivemind, which will be exclusively focussed on crypto-related investments, will invest mainly in four main cryptocurrency sectors, such as trading, staking and yield management, play-to-earn (P2E) gaming projects, and venture capital investments.

Interestingly, Zhang disclosed that he will be in-charge of the company’s crypto trading unit at its initial stage before he will proceed to hire a professional who will see to the day-to-day running of the division.

Furthermore, the firm also said its P2E division will be headed by former Goldman Sachs analyst Sam Peurifoy, whose contribution as a community leader in play-to-earn game Axie Infinity made the game become popular in the cryptocurrency space.

“Establishing a dedicated play-to-earn arm led by Peurifoy is one way Hivemind can differentiate itself from other crypto ventures,” Zhang said.

Peurifoy stated that the company’s approach in P2E games will commence by building and scaling different gaming communities.

He added that the company will map out the perfect strategy on how to onboard traditional video gamers into the digital ecosystem, to enable them to make money in addition to the fun they derive from playing these games.

Crypto Funds Launch Surge

The number of cryptocurrency funds that have been launched since the beginning of the year has been on the increase.

Coinfomania reported in June that Andreessen Horowitz (a16z) launched a $2.2 billion cryptocurrency investment, which invests in cryptocurrency and blockchain projects.

In addition, the crypto space saw the launch of the largest cryptocurrency investment fund earlier this month, after Paradigm announced that it has raised $2.5 billion from investors to establish a fund that will be focussed on cryptocurrencies.

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