RIYADH: Dubai-based venture capital firm Cypher Capital is launching a $100 million seed fund aimed at investing in digital assets, including cryptocurrencies.
The fund, backed by the company’s founder, Bijan Alizadeh, will also invest in decentralized financial platforms, blockchain applications and cryptocurrency games, according to Reuters.
“It will be 100% digital assets,” Alizadeh told Reuters.
Cypher, which manages $10 million in assets, expects to deploy an average of $2-5 million per month. It will focus on investing in the Middle East, North Africa and South Asia regions, and will also invest elsewhere.
The company, which could raise capital in the future for new investment funds, aims to manage $1 billion in assets within three years.
Cypher also plans to open a crypto, blockchain and digital asset hub in Dubai, to provide a workspace where startups can pitch their ideas to potential investors, Alizadeh said.
They would also be offered mentorship, legal advice and technical advice, he said, in hopes of developing the hub into an industry-focused networking community.
Bitcoin, the leading international cryptocurrency, traded lower on Wednesday, falling 2.21% to $41,959 as of 3:21 p.m. Riyadh time.
Ether, the second most traded cryptocurrency, was priced at $2,945, down 2.10%, according to data from Coindesk.
Initial Public Offering
Japanese cryptocurrency exchange Coincheck on Tuesday revealed plans to go public in the United States.
It plans to merge with Thunder Bridge Capital Partners IV, a special purpose acquisition company, or SPAC, in a $1.25 billion deal, which is expected to close in the second half of this year.
The combined entity will be called Coincheck Group NV. It is expected to be listed on the Nasdaq Global Select Market under the symbol “CNCK”, Bitcoin.com reported.
SPACs are publicly traded shell companies that conduct IPOs to raise funds to acquire a private entity at a later date.
Coincheck, headquartered in Tokyo, operates one of the largest multi-cryptocurrency marketplaces and digital asset exchanges in Japan.
The company is regulated by the Financial Services Agency, Japan’s largest financial regulator.
The platform has around 1.5 million verified customers, according to Bitcoin.com.