A former senior trading executive at Citigroup explains why he left the Wall Street bank 14 years later to start his own crypto company and outlines 4 strategies his $1.5 billion venture will follow for altcoin projects. Matt Zhang, a former senior trading executive at Citi, recently left to form Hivemind Capital Partners. In an interview, he explained 4 strategies that the $1.5 billion crypto startup will follow. He also shares unique features that can set his firm apart from other multi-strategy funds. Details cryptocoin.com‘in.
Why did he leave?
Matt Zhang has had a career at Citigroup over the past 14 years, overseeing venture investments in fintech companies and managing the Wall Street bank’s global structured product trade. Crypto startup Hivemind Capital Partners left all that behind to start from the ground up. However, according to Zhang, who learned about Bitcoin in 2015, the $2.3 trillion market is still immature. And he is well aware that he is full of volatility. It was his desire to “stay on the edge of innovation” that drove him to replace an established Wall Street career with a chirpy startup life. Zhang says in an interview:
I think it’s important to remember how you succeeded in the first place. This is because you always want to discover new things, innovate and understand what’s going on. Financial services used to be like that, but what we’ve seen over the past few years shows me that crypto has a lot of potential to be that frontier.
According to him, the crypto industry has been able to bring together the fields of financial services, technology, engineering and mathematics. The explosion of innovation in the market makes it impossible to follow the paradigm shift without being a part of it. Zhang: “I want to dedicate myself to working on this. And I think that will be my career for years to come.”
A $1.5 billion multi-strategy initiative
Zhang, who has a background in trading, investing and business, and has already raised $1.5 billion for his venture, is trying to build what he calls a “one-stop shop” or “end-to-end capital solution.” This means that his firm can secure blockchain networks through staking, achieving equity growth through venture investments. In addition, it means that by trading or investing in tokens, it can support cryptocurrencies in the ecosystem and edit content with a play-to-win strategy.
The lines between crypto hedge funds, venture funds and trading markets have blurred, for example, as token traders also participate in private token sales. Meanwhile, Wall Street firms are also jumping into crypto. Citigroup plans to hire 100 people to focus on blockchain and digital assets. However, Zhang thinks that investors cannot simply apply the wealth management models from the Web 2.0 era in the Web 3.0 space. “The wealth management model in the past has divided people into either an equity player or a debt player. “In crypto, if you are going to be successful, you have to really think about what entrepreneurs need and provide them with a different path to help them grow.”
2 strategies for altcoin projects
One of the ways Hivemind resources deal with investors is by partnering with layer one blockchains. It has already chosen the popular altcoin Algorand (ALGO) to provide the technology and network infrastructure. Launched in June 2019, Algorand was created by MIT computer science professor Silvio Micali. Blockchain aims to empower decentralized finance activities faster, with lower costs and improved security. It is also committed to being environmentally friendly and efficient. The ALGO token rose 422% last year, trading at $1.57 as of Thursday evening. Zhang said, “I think their enterprise solutions have excellent and enduring corporate quality. But being corporate quality doesn’t mean it can’t be fun, I think there will be a lot of great projects built on Algorand.”
To create a multi-chain investment strategy, Zhang is also in active talks with other smart contract platforms for similar strategic partnerships. In this regard, the investor says:
We will dedicate resources and capital to supporting certain first-layer networks, projects and protocols that come off the chain early. That way, investors will be able to see these deals very early on and these tiers will get additional capital and resources to support their networks.
Another distinguishing factor is that Hivemind already has a “highly active” community guild which can be used not only to participate in play to earn strategies but also to discover early crypto projects. To that end, Zhang hired 27-year-old former Goldman Sachs analyst Sam Peurifoy, known in the world of popular altcoin Axie Infinity (AXS) as “Das Kapitalist”, to lead the play-to-win arm of Hivemind. Zhang said, “He has a rare combination of a deep connection with the community and a genuine passion for the playground. I think this is a very rare thing. I am very excited to be working with him.”
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