China’s crackdown on crypto has had negative effects on the crypto space as a whole and decentralized finance (DeFi) has not been left out. The news of China’s crypto ban saw prices go down across the board, given that China has always been a big part of the crypto space.
Despite the negative effects the crackdown has had on the space, many believe that this may be a good thing for the market going forward. One of these investors is DeFiance Capital’s, Arthur Cheong.
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The interesting thing about Cheong is the background that he had before entering the crypto space. Oil trading was Cheong’s specialty before he quit the space and took a rather sudden plunge into the crypto space. But instead of going through the formal point of entry like Bitcoin and Ethereum, Cheong had bet big on the decentralized finance space.
The investor’s big break had come in the form of a $100,000 investment in the decentralized finance market, which he had made into Axie Infinity when the asset was trading at a mere eight cents. Before this, Cheong had founded DeFiance Capital, through which he had placed his big bet on DeFi.
The investment in Axie Infinity had paid off big in the following months as the price of the digital asset had grown over 150,000%. Turning a $100,000 initial investment into a $150 million holding. The founder did not reveal when or if the fund had liquidated any of its crypto assets but has not wavered in his belief in the decentralized finance market and the potential it holds for his fund.
China Crackdown May Be Good For DeFi
Unlike most, Cheong holds a more optimistic view of the recent crypto crackdown in China. Speaking to Bloomberg, the founder believes the crackdown may be good for the DeFi assets which his fund manages.
DeFi market cap on a recovery trend | Source: Market Cap DeFi Dominance on TradingView.com
The fund which bets big on the decentralized finance market manages up to 9 figures in assets for its clients, according to the founder. A major push being its belief that the DeFi market was going to take over traditional finance markets.
Commenting on how the crackdown may help the market, Cheong attributed this to tightening restrictions on centralized cryptocurrency companies and exchanges. As such, “Investors will look for decentralized alternatives, which would benefit the entire DeFi ecosystem,” the founder said.
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DeFi is currently giving traditional finance services a run for its money. Services like borrowing, lending, and yield farming are completely decentralized, putting investors in complete control of their money. Decentralized finance will continue to eat into traditional finance service at its pace and Cheong is very bullish on the future of the space.
Featured image from Dan Spira, chart from TradingView.com