LD Capital has recently taken an investment position in Paralink's upcoming Polkadot Oracle gateway.
How did you first enter the crypto space?
We have come across one of the earliest blockchain mining companies during equity investment back in 2015. Crypto industry immediately caught our attention during the conversation with the mining company. As we dug deeper, we realized that blockchain technology was revolutionary. Without any hesitation, we devoted ourselves into crypto industry. The same year, we started mining and got a decent return. In 2016, ICO, a new crowdfunding model, began to gain popularity. Our focus has also gradually shifted from mining to ICO investment since then.
What is your favorite quality in a crypto project?
We favor different types of projects depending on the stage of crypto industry. In 2017–2018, crypto industry was still in its early days. Thus, we focus on infrastructure investments (public chains and protocols), such as: QTUM, Vechain, EOS, Stellar, Algorand, Loorping, Tezos, IPFS, Polkadot, etc. They have provided innovative solutions to tough technical problems like scalability, consensus algorithms, formal verification and so on.
During the period of 2018–2019 bear market, we tended to invest in start-ups with steady cash flow (revenue stream).We believed that no one would know how long this bear market would last and only these start-ups could survive. Thus, we dedicated a major portion of investment to exchanges and media companies like MXC, BitMax, HBTC, BKEX and so on.
2019–2020, crypto market gradually recovered from the dip. We believe that DeFi is most pragmatic and can be used widely in real life. With that in mind, we have invested in many DeFi projects, such as Stafi, DHedge, Reef, Nsure, Tidal, etc.
What is your favorite quality in a founder?
We believe founder is critical to the success of a project. To some extent, investing in start up is equal to investing in team. We believe that founders should have the following characteristics:
1. Passion: The founder must be passionate about blockchain world and love his or her career.
2. Commitment: Founders must be fully devoted to their company.
3. Professional knowledge: The founder must be a domain expert and have experience in relevant sectors.
Why did you choose to invest in Paralink?
We invested in Paralink for reasons as per below:
- Excellent team. We were impressed by ParaLink’s team. ParaLink’s team consists of blockchain professionals with wide industry exposure.
- ParaLink’s Paralink Query Language (PQL) is a technological break-through.
- Oracle and Polkadot are in line with our investment philosophy. We believe that oracle is DeFi’s most important infrastructure, so Polkadot racetrack has absolute advantage over others.
What are 3 things that a project can do in one month to increase traction and build community?
- Good Communication Channel: Use telegram group, Kakao, Wechat, Discord and other tools available to build up community, maintain smooth communication with the community members, answer their questions promptly, and keep the community posted on project progress.
- Cooperate with KoL/Influencers: Work with industry KOLs to complete AMAs and reviews to increase the visibility of the project within the KOL community.
- Well-designed Bounty Program: Have long-term incentive plans to motivate community members to promote the project.
For more information on LD Capital, you can visit their website at ldcap.com.