Unveiling Vertex Capital: Innovative Philosophy and Cutting-edge Practices in Web3 Investment

Since the BTC ETF was approved for trading in early 2024, the price of Bitcoin has soared, reaching a record high of $70,000 in March, fully announcing the arrival of a new round of bull market. This historic event not only attracted a large number of traditional institutional investors to include cryptocurrencies in their portfolios, but was also driven by top global asset management companies such as BlackRock and Fidelity Investments. These companies submitted applications for Bitcoin ETFs, demonstrating their high attention to the cryptocurrency market.

The assets managed by institutions such as BlackRock and Fidelity Investments are huge, exceeding $8.7 trillion and $4.3 trillion respectively, and their participation has brought unprecedented capital inflows to the Bitcoin market. For example, since the approval of the BTC ETF, it has attracted more than $9.7 billion in capital inflows in just one month, and the total inflow is expected to reach $14.4 billion this year, and $27 billion and $39 billion in the next two years, respectively.

Financial giants such as John Mack, former CEO of Morgan Stanley, and Jamie Dimon, CEO of J.P. Morgan, have also made positive remarks. John Mack once said that "Bitcoin will not disappear", and although Jamie Dimon has reservations about Bitcoin, J.P. Morgan has become one of the authorized participants of the Blackstone Bitcoin ETF. Cathie Wood, founder of Ark Invest, has also publicly expressed her confidence in Bitcoin and blockchain technology many times, believing that these technologies will completely change the global financial system.

At the same time, traditional financial markets are facing unprecedented challenges. According to Deloitte's 2024 Banking Outlook report, global economic growth is expected to be only 3.0%, while the growth rate in developed economies such as the United States, the Eurozone, Japan and the United Kingdom is expected to be only 1.4%. This slowing economic growth, coupled with geopolitical tensions and supply chain disruptions, has greatly increased uncertainty in financial markets.

The rapid rise in global interest rates has also put pressure on the banking industry. According to a report by JP Morgan, the Federal Reserve is expected to start cutting interest rates in the third quarter of 2024, but interest rates will remain at a relatively high level. High interest rates have led to higher financing costs, which has increased the debt burden of companies and governments, especially those with lower credit ratings. The corporate default rate in the United States is expected to rise to 5% in 2024.

Against this background, more and more traditional investment institutions and Web2 high-quality projects have begun to explore new opportunities in the crypto field and Web3. The new narrative of Web3 and the new direction guided by policies and regulations emphasize the integration of the virtual and real worlds, aiming to ensure that the assets in the crypto world have a more solid real-world value support. In such a market environment, Vertex Capital, as a new fund entering the battle, pays more attention to actively adjusting its strategy and strengthening the linkage between Web2 and Web3.

Investment strategy: forward-looking layout and precise attack

Compared with traditional Web2 funds, Web3 funds usually have the following significant advantages:

1. Short investment cycle: Most Web3 projects can be exited within 1-2 years, while traditional US dollar funds need 7-10 years or even longer.

2. Smooth exit channel: The Web3 trading market is more flexible and convenient than the traditional financial market, and the threshold for issuing coins is relatively low. For the project party, the success of issuing coins and listing is closely related to the team's operating experience and the depth of market understanding; for investors, how to dig out high-quality projects with high investment value from a large number of projects requires long-term industry experience and extensive resource accumulation.

Vertex Capital's investment strategy focuses on industry hot spots and future trends, aiming to predict industry trends 6-12 months in advance through a professional investment research team, and to make early arrangements at the right time to seize market opportunities.

It is worth mentioning that in order to avoid idle funds and maximize the efficiency of fund use, Vertex Capital has adopted a strategy of linking the primary and secondary markets. The crypto market has entered a bull market cycle, and the transaction volume and price of the secondary market have risen. By investing unused funds in the secondary market, the efficiency of fund use is maximized, and every opportunity to create value for LP is not missed. The primary market investment adopts a targeted incubation strategy, selecting high-quality early projects, in-depth guidance, helping their business growth, while making full preparations for the successful issuance of coins, fully utilizing the accelerated amplification effect of the bull market, and increasing the successful exit rate of the fund.

In addition, Vertex Capital's linkage between Web2 and Web3 is in line with the new generation of narrative trends. Due to the closure of the listing channel, a large number of high-quality Web2 projects have begun to turn to Web3 to seek "listing" opportunities. Compared with traditional Web3 projects, these Web2 transformation projects have been selected by traditional investment institutions. They have more mature business models, more complete team configurations, richer experience, and a certain amount of income and real-world value support, and are more competitive in issuing coins. Vertex Capital uses its rich experience and resources in the fields of Web2 and Web3 to help these projects successfully transform and succeed.

The investment philosophy of Ander Tsui, founder of Vertex Capital

Ander Tsui, the founder of Vertex Capital, has been deeply involved in the crypto industry for more than ten years. He is a senior investor and entrepreneur with rich investment experience and extensive industry resources. He is not only the founder of Vertex Capital, but also serves as the co-chairman of the Hong Kong Blockchain Association and founded the world-renowned EDGE Summit.

In multiple bull and bear crossings, Ander Tsui accurately grasped the investment rhythm and narrative changes, and accumulated extremely rich industry experience and top resources in primary and secondary market investments. Under his leadership, Vertex Capital has accumulated leading Web3 market investment and research resources, and has a professional research team that accurately positions projects according to market trends to seize first-mover advantages.

Ander has demonstrated outstanding leadership and innovative thinking in many fields. He not only has a deep accumulation in the fields of Web3 and cryptocurrency, but also has made important contributions to promoting the integration of AI and Web3. He once emphasized at the EDGE Summit that Web3 represents the field of production relations, while AI represents the field of productivity. The two are contradictory in basic logic, but they can complement each other and jointly promote innovation.

In addition, Ander also demonstrated his strategic vision in mergers and acquisitions. Recently, Vertex Labs acquired the well-known Digimental Studio. This acquisition will promote the development of HAPE's ecosystem and further enhance Vertex Capital's influence in the fashion and entertainment fields.

Primary Market Strategy: Resource Integration and Targeted Incubation

Vertex Capital's primary market strategy is an important part of its core competitiveness. Through resource integration and targeted incubation, it promotes the rapid growth of Web3 projects. Relying on its ecological project TN Labs' many years of deep experience in the Web2 field, Vertex Capital has accumulated a large number of top global creators, hundreds of world-renowned brands, offline scenarios, channels and supply chain resources. These resources not only help the invested companies accelerate their business development, but also create channels and scenarios for the real commercialization of traditional Web3 projects, thereby further amplifying their value.

Vertex Capital has demonstrated strong strength in resource integration, enabling the team to accurately capture and lock in popular projects with high potential. The following are its main resource advantages:

1. Leading Web3 market investment and research resources: Vertex Capital has a professional research team that can accurately locate projects based on market trends and seize first-mover advantages.

2. First-class KOL resources: Through cooperation with well-known KOLs, Vertex Capital can pave the way for project issuance and publicity, and accelerate the establishment of market influence and popularity.

3. Extensive blue chip community cooperation resources: Promote cross-community cooperation, help projects quickly complete data indicator accumulation, and provide high-trust endorsements for projects.

4. Exchange resources: Years of close cooperation with first-line exchanges in the industry have enabled Vertex Capital to be well aware of the differences in strategic focus and strategy changes of various exchanges, thereby achieving accurate matching between projects and exchanges, and assisting projects in obtaining the most favorable conditions for coin issuance and listing.

5. Deep industry links: Vertex Capital regularly organizes industry exchanges, industry leader sharing sessions, industry summits and other activities to help project parties obtain high-quality industry resources and improve the success rate and influence of projects.

In addition to resource integration capabilities, Vertex Capital also has sufficient experience in Web2 transformation. In the new fund, Vertex Capital not only strengthened its asset management capabilities in the Web3 secondary market, but also introduced new members with rich experience in Web2 incubation and investment, and is committed to maximizing investment returns for all LPs with a new investment strategy.

Vertex Capital's TN Labs team has accumulated rich experience in the investment and incubation of Web2, and is also a successful case of Web2 transformation to Web3. They have profound experience in strategy formulation, business combing, capital path planning and Web3 transformation, and have become the best bridge and guide for Web2 transformation project teams to contact and understand the Web3 field. Through these resources and experience, Vertex Capital ensures that the invested projects can successfully achieve commercialization and success in the Web3 field.

Vertex Capital not only performs well in early-stage investment, but also provides a full range of post-investment management and incubation acceleration services through cooperation with other investment institutions and incubators to ensure that the invested projects can stand out in the fiercely competitive Web3 market.

For example, Digital Spark, a deep partner of Vertex Capital, is a fintech company focusing on digital encrypted asset management. The core members of the team began investing in digital encrypted assets in 2013. Through continuous exploration and trial and error, they formed the current core team and complete trading logic in 2017. In the years of working in the cryptocurrency market, the Digital Spark team has gradually shifted from research and investment in the primary and secondary markets to focusing on secondary market trend tracking, from subjective trading to the development of trend tracking trading systems, and from seeking short-term excess returns to pursuing long-term compound interest. As a research-driven investment institution, Nothing Research has introduced the new concept of on-chain fund investment management in the rapidly developing digital asset field, successfully combining cutting-edge research with rapid execution. This model of Nothing Research provides Vertex Capital with new ideas and partners, and provides strong support for the implementation of its investment strategy.

Through this comprehensive resource integration and targeted incubation strategy, Vertex Capital can not only accurately grasp market opportunities, but also effectively promote the rapid growth and successful exit of invested projects, maximizing LP's investment returns.

Secondary Market Strategy: Flexible Adaptation and Steady Returns

Vertex Capital's investment strategy in the secondary market is dominated by the CTA (Commodity Trading Advisor) trend following strategy, supplemented by neutral strategies such as rate arbitrage. After three rounds of bull and bear markets from 2018 to 2024, Vertex Capital's combined trading system has demonstrated its stable market performance and excellent risk management capabilities.

Vertex Capital's secondary team aims at a high profit-loss ratio and builds a trading system based on multiple factors such as momentum analysis, volatility tracking and orderbook depth. These factors are carefully designed and tracked over the long term to optimize the yield curve of CTA strategies in different market conditions.

1. Momentum Factor: By analyzing the momentum changes in the market, capture the formation and continuation of trends.

2. Volatility Factor: Track market volatility and adjust strategies to adapt to drastic changes in the market.

3. Market Depth Factor: Use orderbook data to evaluate market depth and liquidity to support trading decisions.

The combination of these factors enables Vertex Capital to maintain a high level of returns in both trending and volatile markets.

In addition, Vertex Capital also uses a variety of sub-strategies based on the FOF (Fund of Funds) concept to optimize the yield curve. This strategy combination not only diversifies risks, but also improves the stability of overall returns.

1. Multi-strategy portfolio: Diversify returns by managing sub-strategies of various styles, such as CTA trend following and rate arbitrage.

2. Sharp ratio optimization: By optimizing the strategy portfolio, the CTA strategy can achieve a Sharpe ratio of 2.4, greatly improving risk-adjusted returns.

Risk control is crucial in the highly volatile crypto market. Vertex Capital has developed a long-term market-proven risk control monitoring robot system that can provide timely feedback and control under conditions such as profit and loss, network stability and extreme market conditions to ensure the safety of funds and the stability of returns.

1. Real-time monitoring: The risk control system can monitor market conditions in real time and adjust strategies when necessary.

2. Automated risk management: Through the automated system, timely respond to market changes and reduce the risk of human operations.

3. Feedback and adjustment: The system can dynamically adjust according to market feedback to ensure that risks can be effectively controlled even under extreme market conditions.

Through the above multi-faceted strategies and strict risk control system, Vertex Capital has achieved the dual goals of flexible response and stable returns in the secondary market, providing investors with high-quality asset management services.

Invested Projects: Excellent Performance and Future Potential

Vertex Capital focuses on four major tracks and is committed to exploring the top projects in each track. Through the combination of equity and tokens, it achieves portfolio diversification and high returns. The following are some projects with excellent historical performance. The success of these projects not only reflects the excellent investment vision of the Vertex Capital team, but also proves its strong execution and resource integration capabilities in the primary and secondary markets. Some of the projects that the core members of the team have participated in investing in:

Stratos: A decentralized data grid project with a return on investment (ROI) of 100 times.

Gnosis Chain: Formerly known as Xdai, it is a side chain of Ethereum with a return on investment of 20 times.

Izumi: A well-known Swap project on Zksync with a return on investment of 10 times.

BoringDAO: Multi-chain bridge project with 20x ROI.

Divergence: Composable crypto project with 20x ROI.

Qredo: Leading distributed MPC wallet for institutions with 10x ROI.

EpiK: AI robots in Web3 access AI data networks with a 20x ROI.

YFX: Decentralized perpetual contract exchange with a 20x ROI.

Behind the success of these projects is Vertex Capital's deep understanding and precise grasp of the market. Through a professional investment team and rich resource integration capabilities, Vertex Capital is able to identify investment targets with great potential among many projects and help these projects achieve rapid growth through comprehensive support.

Vertex Capital not only performs well in invested projects, but also has a series of promising project reserves covering fashion entertainment, NFT, metaverse, infrastructure and other fields.

Hape: A Web3 brand that integrates fashion, technology and culture. Launched by Digimental Studio in 2022, the first release contains 8,192 unique 3D NFTs. Hape has collaborated with well-known brands such as Diesel, Jägermeister, Zebra Craft, FUNCOCO YEE, Honey Relief, etc., and has quickly attracted more than one million brand fans around the world.

MEET48: is building a borderless metaverse city to provide a platform for virtual idols and AI-Web3.0 entertainment. Here, users can create and interact with their favorite virtual idols or real idols, and enjoy an immersive and smart social metaverse experience.

Klickl: a global settlement system and traditional bank partner network that provides one-stop accounts, custodial wallets, payment, settlement, on/off ramp and transaction services. It is now the first to obtain all the financial licenses required to conduct digital financial business in the UAE, and has established a digital financial network with 60 banks around the world. It has cooperated with stablecoin companies such as Tether and Circle, as well as VISA and MasterCard to issue digital asset debit cards.

It is worth mentioning that Klickl's founding team and board members include heavyweights such as Mike Lempress, who served as Coinbase's chief legal and risk officer and A16Z executive; H.E. Abu Baker Al Khoori, CEO of Abu Dhabi Capital Group; Dr.Najam Kidwai, founder of C1 Fund; and Jeffry Singer, former CEO of Dubai Financial Center and Nasdaq. These members have rich experience in banking, funds, supervision and digital currencies, providing strong support for Klickl's development.

In addition, Vertex Capital also has a series of other promising projects, including:

LightCycle: A project focusing on fashion entertainment and the metaverse.

Skytopia: An emerging NFT and metaverse platform.

TN Labs: A laboratory with deep accumulation in technology and Web3.

H3 Entertainment: Focusing on the Web3ization of the entertainment industry.

Fansland: A Web3 platform connecting fans and idols.

Cycle Network and Deagent: Committed to infrastructure construction and innovation.

Through these outstanding investment strategies and project selections, Vertex Capital not only stands out in the current market, but also lays a solid foundation for future development. The company will continue to leverage its advantages in resource integration and market insight to promote the success of more innovative projects and realize the long-term value of investors.

Participate in Token Hunter and win generous rewards

Vertex Capital is about to launch an innovative game event called Token Hunter, which is expected to be officially launched on October 23. This event will be linked with Vertex Capital's invested projects. Through simple and interesting MiniApp games, it will attract a large number of Telegram users, increase the exposure of investment projects, and bring rich rewards to community members, achieving "one fish, two kills".

Token Hunter's game tasks include daily check-in tasks, social media interactions, inviting friends to help, joining the TG community, linking wallet rewards, following social media, forwarding tasks, etc. The core gameplay of Token Hunter is the classic lucky wheel, and the prizes include gold coins, random treasure chests, cooperative brand rewards and empty doors. Through this simple, threshold-free gameplay, users can get generous rewards in a relaxed and enjoyable process.

The coins in the game can be exchanged for points of Vertex Capital project brands at a certain exchange rate. This points system not only increases the exposure of each brand, but also promotes mutual drainage and resource sharing between different projects. Through Token Hunter, Vertex Capital hopes to bring more fun and benefits to community members, promote interaction between projects and users, and enhance the activity of the overall ecosystem.

Token Hunter was officially launched on October 23. By participating in this interesting game, you can not only get rich rewards, but also get close contact with multiple investment projects of Vertex Capital and become part of the community. Come join the game and enjoy this feast together!

Official link of the game: https://t.me/hunter_m_bot

Join the Telegram community: https://t.me/TokenhunterOfficial

Follow X: https://x.com/TokenHunterBot