A Cryptocurrency Investor Who Bet on Ether Is Considering Investing in a New Blockchain Fund

According to Simon Seojoon Kim, he began investing in Ether, the cryptocurrency that powers the Ethereum network, in the year it began — 2015.

His pals thought he was insane for investing a sizeable portion of his life assets in the new cryptocurrency. By March 2017, he had invested about $400,000.

Ether then began climbing.

While Kim's investments are difficult to verify, one thing is certain: Ether's value has increased significantly since the start of 2017. It has increased by more than 980 percent in the last year. Meanwhile, Kim has established himself as one of South Korea's most prominent blockchain evangelists. Following the successful launch of his first blockchain fund in December, he is preparing to launch a second this month.

“He is the Yoda of cryptocurrency,” said Sean Park, a senior partner and managing director of Boston Consulting Group Inc. in Hong Kong who collaborated with Kim on a blockchain project.

Kim is a member of a growing class of newly affluent individuals who acquired their wealth through virtual currency. The two largest tokens, Bitcoin and Ether, continue to fluctuate violently, but both reached new highs this year.

“The most successful investments are made when you identify a fundamentally sound asset that is either receiving little attention or is being viewed negatively,” Kim said in a Seoul interview, referring to his early cryptocurrency bet.

By trade, the 36-year-old entrepreneur is a software developer who has founded and sold two businesses. One was a technological company specialising on education, while the other was a dating app.

In 2018, he co-founded Hashed, a blockchain-focused venture financing business. It invests in businesses and assists them in their development by facilitating partnerships, offering financial assistance, and even assisting with public relations.

In December, Hashed raised $120 million for its first blockchain fund. According to the companies' half-year financial filings, it was backed by South Korean behemoths Naver Corp. and Kakao Corp.

Now, Hashed intends to raise at least 200 billion won ($173 million) this month for a second fund, Kim added.

Hashed typically invests between $1 million and $10 million in each firm. It invested alongside billionaire Mark Cuban in a $7.5 million fundraising round for Vietnamese game developer Sky Mavis in May, following a seed round in 2019. Additionally, Kim noted, the company invested $2.5 million in Loco, an India-based gaming streaming platform.

However, Hashed has attracted major participants such as internet corporation Naver, the third-largest listed company in South Korea by market capitalisation. According to Naver, Hashed has the greatest experience in the blockchain business, having revealed investments totalling 14 billion won in Hashed's inaugural fund.

“Our investors' primary objective is to maximise their profit,” Kim explained. “However, they want to learn about the market from us as well.”

Kim Kyonghwan, head of Sungkyunkwan University's graduate school of enterprise in Suwon, a city near Seoul, sounds a cautionary note.

“Because the blockchain sector is still in its infancy, volatility may be a short-term risk,” he explained. “However, I feel that this is a market that will eventually institutionalise and grow.”

Kim stated that there is significant upside potential due to the fact that the blockchain technology sector is still in its infancy. However, when it comes to cryptocurrency trading, he cautions those without knowledge to be wary about attempting to earn quick fortunes.

Kim stated he still maintains the majority of his Ether holdings while sitting in a room named after Satoshi Nakamoto, the mysterious founder of Bitcoin. He also disclosed that he is a significant investment in a cryptocurrency called Luna coin.

Kim, on the other hand, prefers to avoid conventional investments such as bonds and commodities. He also lives with his wife in a rented apartment rather than purchasing his own property, he explained.

“Traditional assets are not advantageous to me,” he stated. “They simply appear to be too ancient and out of date.”

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