Upcoming face-off between DePIN and AI: Exclusive interview with FutureMoney Group

Decentralized Physical Infrastructure Networks (DePIN) are revolutionizing Web3 and blockchain by offering practicality and value in the real world. Investors are taking notice of this emerging industry. FutureMoney Group, an Asia-based venture capital firm, has been at the forefront of investing in the DePIN and artificial intelligence (AI) sectors since its establishment in 2017. With a $50 million asset management scale, the company focuses on primary and secondary investments in projects of various scales and ecological niches.
In an interview, co-founders of FutureMoney Group, Steven Li and Eo Hao, shed light on the current state of the DePIN ecosystem and its potential to expand the Web3 space.
Cointelegraph: How do you view the current state of the DePIN ecosystem?
Steven Li: FutureMoney Group has been heavily involved in the DePIN sector and has invested in numerous portfolios. We have made an effort to cover different subdivisions within the DePIN ecosystem to gain a comprehensive understanding of its development.
The DePIN ecosystem has the following key characteristics:
– DePIN serves as an important bridge between the traditional world and the Web3 field.
– Compared to popular tracks like the Bitcoin ecosystem, DePIN is more easily accepted by traditional funds and understood by traditional users.
– DePIN and AI share significant overlap, and there is a growing trend towards their convergence.
– DePIN is closely integrated with hardware, with a current focus on mobile terminals, vehicle terminals, and mining machine terminals.
– The narrative of DePIN revolves around the combination of hardware and token economics. With the addition of the AI track and an emphasis on staking, DePINFi and AIFi are set to explode in the future, with DePIN at the core.
CT: FutureMoney Group is recognized as the first VC in Asia to focus on the DePIN field. You closed a $20 million fund dedicated to investing in DePIN-related products and services. What attracted FutureMoney Group to the DePIN space?
Eo Hao: We chose DePIN for two main reasons. Firstly, after experiencing multiple rounds of bull markets and the significant expansion of the overall market value of Web3, it has become clear that connecting the digital world to the real world is both possible and necessary, especially with the recent approval of the Bitcoin ETF. DePIN serves as a compelling starting point to bridge these two worlds. Secondly, our LPs include major hardware manufacturers in the Asian market, such as electric vehicle manufacturers and mining farms listed in the United States. This has led us to pay special attention to the blockchain and hardware ecosystem and its related upstream and downstream industries.
CT: Could you share the story of FutureMoney Group and when the company was established?
SL: Co-founders Eo Hao and I began investing in blockchain and cryptocurrency projects in 2016. In addition to purchasing BTC and ETH, we also invested as individuals in projects like BAT, Loopring, and Qtum. After the ICO boom in 2017, we started investing in early-stage crypto projects in early 2018. Initially, we raised a total of $1.5 million from our family, friends, and personal savings, although this amount cannot be considered our official first fund. This marked a significant milestone for us as individual investors transitioning into a formal company.
CT: What was your initial goal when starting FutureMoney Group, and what are your goals now?
SL: Given our backgrounds in financial technology, our initial interest in blockchain technology stemmed from our belief that it would revolutionize the financial system. We established FutureMoney Group with the goal of finding the next generation of “money” through investment, hence the name of our company. Over the years, we have evolved from a venture capital business to a holding company in the crypto field, covering asset management, mining, fund of funds, and incubators. In 2021, we officially changed our company name to FutureMoney Group to reflect this growth. Our current goal is to continue supporting early-stage startups, deepening our involvement in the crypto field, and providing Asian investors with opportunities to allocate crypto assets.
CT: Where does FutureMoney Group stand today? Can you elaborate on your investment practices and portfolio?
EH: Our current investment theme revolves around the Future of Work. As mentioned earlier, FutureMoney Group is highly specialized in the DePIN sector. Messari has recognized us as a representative DePIN VC in Asia, and DePIN Buddy has listed us as one of the most professional investment institutions in this space, along with Borderless and Multicoin.
Our expertise is evident in the comprehensive nature of our DePIN Portfolio, which consists of three products:
– DePIN Surf: This product focuses on early-stage, low-market-value Alpha projects. We have evaluated over 50 projects and selected 23 for investment, including those that have issued tokens.
– DePIN Index: Our portfolio includes 24 high-quality projects in the industry, such as RNDR, TAO, Theta, Nosana, and Mobile. We hold positions in all of them, and since its establishment on December 28, 2023, the overall revenue has nearly doubled, reaching 91.9% in just one quarter.
– Major Market Investments: We have invested in 25 projects, including Powerpod, JDI, GEDONET, and ETHStorage.
CT: What are the significant milestones for FutureMoney Group so far?
SL: We successfully launched the world’s first DePIN Index and were recognized by Messari as a leading DePIN VC in Asia. We have partnered with the IOTEX Foundation for the Depin Surf product. Additionally, we are collaborating with China Bridge Capital and well-known hardware equipment manufacturers that supply to Apple and Tesla.
CT: How do you envision the future of the DePIN space?
EH: While BTC ecology, decentralized finance (DeFi), and Ethereum are focusing on internal advancements within the Web3 industry, DePIN, AI, and RWA (Real-World Assets) are expanding its breadth. Both DePIN and AI have immense market potential, with the Bitcoin ecosystem already being a trillion-dollar market. However, in the real world, we strongly believe that DePIN has significant development potential and wealth opportunities.
For more information about FutureMoney Group, please visit their website.
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